Daijiworld Media Network- New Delhi

New Delhi, Feb 28: India’s private consumption has surged to USD 2.1 trillion in 2024, nearly doubling from USD 1 trillion in 2013, growing at an impressive 7.2% CAGR, outpacing the US, China, and Germany, according to a report by Deloitte India and the Retailers Association of India.

The report, titled ‘India’s changing discretionary spending: key insights for brands’, highlights India's trajectory towards becoming the world’s third-largest consumer market by 2026, driven by a booming middle class and evolving consumer preferences.

The report underscores that India's private consumption growth from 2013 to 2023 has been significantly faster than major economies.

“Surpassing Germany, India’s private consumption has almost doubled to USD 2.1 trillion in 2024 from USD 1 trillion in 2013. The country’s consumption has grown at a 7.2% CAGR, outpacing the US, China, and Germany.”

By 2030, the number of Indians earning over USD 10,000 annually is expected to triple, rising from 60 million in 2024 to 165 million. This surge signals a rapid expansion of the middle class, leading to increased discretionary spending.

Several factors are driving this consumption boom, including:

• Premiumisation: Consumers are prioritising quality, convenience, and experiences over price.

• Evolving Preferences: Demand for premium brands, sustainable products, and personalised experiences is increasing.

With Gen Z and millennials accounting for 52% of India's population, their spending habits are shaping market trends. Their preference for premium products and sustainable choices is set to redefine India's consumer landscape.

A Deloitte official noted:

“By 2030, India’s per capita income is expected to exceed USD 4,000, unlocking new opportunities across sectors. Businesses have an incredible opportunity to tap into evolving expectations.”

With rising affluence and shifting consumer behavior, India is poised to become a global consumption powerhouse, opening doors for businesses, brands, and investors to capitalize on this unprecedented growth.