INDIA'S CONSUMPTION STORY

India’s consumption theme is not a short-term trend but a structural investment opportunity, driven by long-term factors such as rising incomes, urbanisation, and social transformation.

- Teji Mandi

Tax cuts, GST reforms, rate reductions, and pay commission revisions could further accelerate this growth in the coming years. It gives investors exposure to multiple sectors, including FMCG, automobiles, healthcare, retail, travel, and financial services. Thematic funds offer an easy way to invest in this broad consumption story in a diversified manner. However, short-term fluctuations are possible, so investors should consider their risk tolerance and long-term goals before investing in this theme. India’s new phase of consumption is closely linked to the rise in domestic wealth and growing financial confidence. According to Franklin Templeton, domestic savings in FY24 stood at Rs 54 lakh crore and are expected to reach Rs 82 lakh crore by 2030 and Rs 132 lakh crore by 2035. Whil