India's private consumption almost doubles to US$ 2.1 trillion in 2024: Report

India’s private consumption has nearly doubled to Rs. 1,83,30,900 crore (US$ 2.1 trillion) in 2024 from Rs. 87,29,000 crore (US$ 1 trillion) in 2013, growing at a 7.2% Compound Annual Growth Rate (CAGR), outpacing the US, China, and Germany, according to a Deloitte India and Retailers Association of India report. On track to become the world's third-largest consumer market by 2026, India’s middle class is expanding rapidly, with the number of individuals earning over Rs. 8.73 lakh (US$ 10,000) annually expected to nearly triple from 60 million in 2024 to 165 million by 2030. The shift towards discretionary spending is driven by rising affluence, evolving preferences, and increasing demand for premium brands, sustainable products, and personalized experiences, particularly among Gen Z and millennials, who comprise 52% of the population. 

By 2030, India’s per capita income is expected to exceed Rs. 3.49 lakh (US$ 4,000), unlocking new business opportunities across sectors. Expanding digital commerce, growing access to credit, and fintech-driven financial inclusion further accelerate this consumption boom. Credit card penetration is set to triple from 102 million in 2024 to 296 million by 2030, boosting consumer spending. Organised retail is expanding at a 10% CAGR. It is projected to reach Rs. 20,07,670 crore (US$ 230 billion) by 2030, with experience-led retail spaces, omnichannel shopping, and hyper-personalized services redefining brand engagement. Businesses aligning with these trends will gain immense growth opportunities in India’s evolving consumer landscape. 

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