Rising incomes, a young workforce along with rapid urbanization are expected to drive consumption growth across the country. The projection report shows that consumer spending in India will rise to USD 4.3 trillion by 2030. In 2024 that was USD 2.4 trillion. India’s consumer market is now leading the track through expanding up more than 46% by 2030. This also makes it the second largest globally according to the report of Edelweiss Mutual Fund.
The rising income young workforce and rapid urbanization are the main reasons for the rapid increase in consumption across the country. The growth is largely fuelled by India’s expanding middle and upper-middle-income population leading to higher purchase of power and spending.
India’s median age of 28 years is significantly lower than China’s 39 years and US’s 38 years. That positioning is the major driver of global consumption. By 2030 India’s working age population will reach 100 cr. This makes up one-fifth of the global workforce. The dependency ratio will reflect the proportion depending on the working-age population and that will decline from 47% in 2023 and 31% by 2031. This allows a higher disposal income and also increases the consumer spending. Women’s participation in the labour force is significantly improved rising 23% in 2018 from 42% in 2024.
The rise in dual-income families is causing a surge in expenditures on lifestyle and premium goods, which is further bolstering India’s consumer economy.
Urbanization, digital evolution, and financial inclusivity are swiftly altering consumption trends in India. As hopes align in both urban and rural settings, better access to products and services is transforming intention into real expenditures.
