New Delhi: A groundbreaking report released yesterday by Angel One and Iconic Asset paints a picture of India as the future epicenter of global consumption. The study projects a doubling of India’s consumption by 2034, potentially catapulting the nation to the forefront of the world’s consumer markets.
At present, consumption accounts for a substantial 56% of India’s GDP, exhibiting the fastest growth rate worldwide. This trajectory is primarily fueled by the proliferation of nuclear families, with household growth outpacing population expansion and triggering a surge in consumer spending.
The report highlights India’s impressive savings potential as a key factor in this economic metamorphosis. Between 1997 and 2023, the country amassed savings of $12 trillion. Projections indicate a staggering tenfold increase to $103 trillion by 2047, unlocking unprecedented opportunities for economic growth and increased spending.
Recent tax cuts announced in the Union Budget are expected to contribute significantly to this consumption boom. The report estimates that these reductions will free up ₹1 lakh crore, potentially leading to an additional ₹3.3 lakh crore in consumer spending and boosting India’s GDP by 1%.
India’s young demographic is poised to play a pivotal role in this economic shift. With more Gen Z individuals than the entire population of the United States, the report predicts that by 2035, every second rupee spent in India will come from this generation.
Despite the rise of modern retail, traditional neighborhood stores still dominate 92% of India’s retail trade. This presents a significant opportunity for organized retail to expand its market share in the coming years.
As India gears up to lead global workforce expansion, the nation appears set to follow the trajectory of economic powerhouses like the US and China, where discretionary spending on items such as electronics, apparel, and experiences outpaces essential expenditures during periods of strong economic growth.
