Consumers will Push the Economy Forward

With over 1.4 billion population, India is one of the most active and largest consumer markets in the world.

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As per UBS, after passing Japan and Germany, India is set to become the third-largest consumer market by 2026, while being behind the US and China. According to PWC, by 2027, India's consumer market is poised to become the world's third largest owing to factors such as growth in income of middleand high-income households, expanding rural markets, improved reach bolstered by both digital and physical infrastructure, and growing consumer aspirations.

India stands out as a burgeoning consumption environment, which is demonstrated by the 60% contribution of private consumption to GDP in 2023 (comparable to the global growth average of around 63%). Projections indicate that by 2031, India is expected to have an Rs 426.4 lakh crore consumption economy, growing at a CAGR of 13.4% from 2023 to 2031. This growth could be propelled by incremental consumption by the Indian middle class, increased urbanisation, and a growing percentage of the young populace with rising aspirations.