The Deloitte-RAI report highlights that by 2030, India’s GDP is projected to reach $7.3 trillion, with consumption contributing 60% of the economy, positioning the country as a global consumption powerhouse. A key driver of this growth is the burgeoning middle class, with the number of Indians earning over $10,000 annually set to triple from 60 million in 2024 to 165 million by 2030.
Anand Ramanathan, Partner and Consumer Industry Leader at Deloitte India, noted that India’s consumer landscape is transforming, driven by rising discretionary spending, digital commerce, and increased access to credit. These trends are unlocking new opportunities across sectors. He added that businesses need to embrace evolving consumer expectations by offering affordability, convenience, sustainability, and personalised experiences to thrive in India’s dynamic market.
Kumar Rajagopalan, CEO of the Retailers Association of India (RAI), added that India’s discretionary spending is entering a new growth phase, fueled by rising incomes, digital adoption, and shifting consumer preferences. The report provides a roadmap for brands to tap into these shifts and engage with the aspirational Indian consumer effectively.
Key drivers of India’s consumer boom:
Premiumisation and Evolving Preferences: Rising affluence is pushing consumers to prioritise quality, convenience, and experiences over price. Gen Z and millennials, who make up 52% of the population, are leading the demand for premium and sustainable products.
Digital and Financial Inclusion: Expanding credit access, with credit card penetration expected to triple by 2030, is driving consumer spending. Digital payments and fintech solutions, including UPI, are reshaping how consumers engage with brands, accelerating e-commerce growth.
Shift in Household Spending Patterns: As disposable incomes rise, spending on essentials like food has decreased, with more focus on dining out, travel, wellness, and other discretionary categories such as fashion, fitness, and home improvement.
Rise of Organised Retail and Experience-led Consumption: The organised retail sector is growing at a 10% CAGR and is set to reach US$230 billion by 2030. Consumers are gravitating towards omnichannel shopping and experience-driven retail, pushing brands to adapt their engagement strategies.
