Indian Economy News

India's consumer market to become world's second largest by 2030: Report

  • IBEF
  • January 31, 2025

India's consumer market is set to grow by 46% by 2030, driven by rising incomes, a young workforce, and rapid urbanization. Projections indicate that consumer spending will reach Rs. 3,72,33,700 crore (US$ 4.3 trillion) by 2030, up from Rs. 2,07,81,600 crore (US$ 2.4 trillion) in 2024. This growth is fuelled by the expanding middle and upper-middle-income population, leading to higher purchasing power and discretionary spending. India's median age of 28 years, significantly lower than China and the US, along with a growing working-age population and improved women's labour force participation, positions it as a major global consumption driver. Urbanization, digital transformation, and financial inclusion also reshape consumption patterns nationwide. 

The shift from unbranded to branded products and unorganized to organized retail is expected to unlock Rs. 51,95,400 crore (US$ 600 billion) in consumer spending. Urbanization and digitization are transforming buying behaviours, with e-commerce and digital payments driving consumption. Easy credit availability and the rise of premium products contribute to this growth. With rising incomes and improved digital access, rural markets remain a significant untapped opportunity for consumer durables. Overall, India's increasing per capita income and shift toward branded goods and organized retail are laying the groundwork for historic growth in the consumer market. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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