India's rising incomes to fuel discretionary spending rush

Middle-class growth to reshape consumer trends across urban and rural markets by 2030

- Suneera Tandon

Households in both urban and rural India are likely to spend more on discretionary products such as apparel, footwear, travel, and wellness by the end of the decade, fueled by a doubling of per capita income by 2030, and availability of more avenues to indulge, according to a Deloitte India and Retailers Association of India report.

In urban households, food and food service expenses on staples, packaged food, dining out, and alcohol or tobacco may fall from 42.2% in 2023 to 40.45% by 2030.

Conversely, spending on travel and recreation is expected to rise to 15% by 2030, up from 11.37% in 2023.

Similarly, expenditures on health (medical expenses), wellness, fitness, and beauty and personal care are anticipated to swell to 11% of household discretionary spending, compared to 8.72% in 2023.