Consumer spending likely to cross US$ 4 trillion by 2030, says report
- IBEF
- August 11, 2023
As per a report titled "eCommerce in the New Bharat and Its Future" by Shiprocket, consumer spending in India is predicted to exceed US$ 4 trillion by 2030.
According to the research, growing domestic consumer expenditure and the consumption market will cause the country's consumer spending to climb at a CAGR of nearly 10%. Similarly, consumer expenditure on food, housing, clothes, personal care, transportation, and communication would nearly double by 2030.
UPI was the most chosen prepaid method (57%) among consumers, followed by credit cards (31%), and other payment choices including as wallets, net banking, and debit cards. (12%). According to the consumer survey, approximately 80% of people prefer to purchase at online marketplaces. Fashion and accessories (48%) were the most often purchased categories by customers, followed by electronics (32%), and grocery (30%).
CEO and Co-Founder of Shiprocket, Mr. Saahil Goel, together with MD & CEO of ONDC, Mr. T Koshy, and CEO of Images Group, Mr. Bhaveh Pitroda launched the report.
Mr. Saahil Goel said that “We believe in the power of MSMEs and are committed to empowering them with our tech-driven solutions and being their Partners in Growth. India’s digital economy is set to soar to new heights with MSMEs playing a very important role in the growth of the Atmanirbhar Bharat vision. The Report will assist MSMEs in their business growth by helping them in decoding their consumers and leveraging the insights to improve their business".
Mr. T Koshy stated that At ONDC our aim is to transform the Indian e-commerce landscape and we strongly believe that MSMEs will play a key role in developing the future of Indian economy. It is critical for any business to understand the consumer psyche, and this Report will assist MSMEs in understanding their consumers' thought processes, allowing them to make better business decisions in the future”.
Meanwhile, the government has been developing an e-commerce strategy since 2018. It even circulated a draft in 2019. The strategy aims to establish coherence among the different rules and regulations that regulate the ecommerce sector. These include the Consumer Protection Act, the DPIIT's foreign direct investment policy, the Competition Act, and the Digital India Act, which is being developed by the Ministry of Electronics and Information Technology.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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