The Edelweiss Mutual Fund research projects that by 2030, India’s consumer market would have grown by 46 per cent, making it the world’s second largest. Across the nation, rising salaries, a youthful labour force, and fast urbanisation are predicted to fuel consumption growth.
Forecasts indicate that India’s consumer spending will increase from US $ 2.4 trillion in 2024 to US $ 4.3 trillion by 2030. Higher purchasing power and more discretionary spending are the results of India’s growing middle- and upper-middle-class population, which is a major contributor to this rise.
India is positioned as a major driver of global consumption because its median age of 28 years is much lower than that of China (39 years) and the US (38 years). India will have 100 crore working-age people (15–64 years old) by 2030, accounting for one-fifth of the world’s workforce.
Higher disposable income and more consumer spending will be possible when the dependency ratio, which shows the percentage of working-age people with dependents, drops from 47 per cent in 2023 to 31 per cent by 2031.
Significant progress has also been made in women’s labour force participation, which increased from 23 per cent in 2018 to 42 per cent in 2024.
India’s consumer economy is being further strengthened by the rise of dual-income households, which is driving up expenditure on luxury goods and lifestyle items.
India’s purchasing patterns are changing quickly due to factors including urbanisation, digital change, and financial inclusion. Better access to goods and services is converting intentions into real expenditure as desires in rural and urban areas converge.
The nation is also seeing two significant changes in consumption: the move from unorganised to organised retail and from unbranded to branded. In the upcoming years, this change is anticipated to unlock an additional US $ 600 billion in consumer spending.
