India’s private consumption has doubled over the past decade, reaching $2.1 trillion in 2024, growing at a 7.2% CAGR, outpacing economies like the US, China, and Germany, according to a new report by Deloitte India and the Retailers Association of India (RAI). The report, titled ‘India’s Discretionary Spend Evolution: A Roadmap for Brands’, projects that by 2030, India’s GDP will hit $7.3 trillion, with consumption contributing 60% to the economy, solidifying India’s position as a global consumption powerhouse.
Transforming Consumer Landscape in India
According to Anand Ramanathan, Partner & Consumer Industry Leader, Deloitte India, India’s consumer market is witnessing a fundamental transformation, shaped by digital commerce, financial inclusion, and evolving spending patterns.
“By 2030, India’s per capita income is expected to exceed $4,000, creating new opportunities across sectors. Brands that integrate affordability, convenience, and sustainability while leveraging data-driven personalisation will thrive in this rapidly expanding market,” Ramanathan stated.
Kumar Rajagopalan, CEO, RAI, emphasized that India’s discretionary spending is entering a new phase of growth, fueled by rising incomes, increased digital adoption, and changing consumer habits.
“With the rise of organized retail and new commerce models, brands that align with these trends will unlock immense opportunities for growth and innovation,” he added.
Key Drivers of India’s Consumption Growth
1. Expanding Middle Class and Premiumisation
By 2030, the number of Indians earning over $10,000 annually is set to nearly triple, from 60 million in 2024 to 165 million. This shift is driving demand for premium products, sustainable goods, and personalized shopping experiences, particularly among Gen Z and millennials, who comprise 52% of the population.
2. Digital and Financial Inclusion Boosting Spending
The rapid expansion of credit access and digital payments is reshaping consumer spending habits. Credit card penetration is expected to triple, from 102 million in 2024 to 296 million by 2030. Fintech solutions, UPI, and digital payment platforms are fueling e-commerce adoption, driving digital-first consumption.
3. Shift in Household Spending Patterns
As disposable incomes grow, spending on essentials like food has declined, indicating a greater preference for discretionary categories like travel, fashion, wellness, and home improvement. Rural food expenditure has fallen from 60% to 47%, while urban food expenditure has dropped from 48% to 40%, reflecting increased spending on dining out and lifestyle choices.
4. Growth of Organised Retail and Experiential Shopping
Organized retail in India is growing at a 10% CAGR and is projected to reach $230 billion by 2030. Consumers are increasingly gravitating towards experience-driven retail, omnichannel shopping, and hyper-personalized services, pushing brands to rethink their engagement strategies.
Also read: E-commerce Fuels Growth in Rural India
The Road Ahead for India’s Consumer Market
India is on track to become one of the world’s most dynamic consumption markets, with digital transformation, financial inclusion, and evolving consumer preferences playing a key role in driving growth. Businesses that adapt to changing spending habits, embrace technology, and offer value-driven experiences will be best positioned to capitalize on this expanding opportunity.
