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

Rising incomes, a young workforce, and rapid urbanization are expected to drive consumption growth across the country. According to projections, consumer spending in India will rise to USD 4.3 trillion by 2030, up from USD 2.4 trillion in 2024.

This growth is largely fuelled by India's expanding middle and upper-middle-income population, which is leading to higher purchasing power and increased discretionary spending.

India's median age of 28 years is significantly lower than China's 39 years and the US's 38 years, positioning it as a major driver of global consumption.

By 2030, India's working-age population (15-64 years) will reach 100 crore, making up one-fifth of the global workforce. The dependency ratio--which reflects the proportion of dependents to the working-age population--will decline from 47 per cent in 2023 to 31 per cent by 2031, allowing for higher disposable income and increased consumer spending.

Women's participation in the labour force has also seen significant improvement, rising from 23 per cent in 2018 to 42 per cent in 2024.

This increase in dual-income households is leading to higher spending on lifestyle and premium products, further strengthening India's consumer economy.

Urbanization, digital transformation, and financial inclusion are rapidly reshaping India's consumption patterns. As aspirations converge across urban and rural areas, improved access to goods and services is turning intent into actual spending.

Additionally, the country is witnessing two major shifts in consumption: a transition from unbranded to branded and from unorganized to organized retail. This shift is expected to unlock USD 600 billion in additional consumer spending in the coming years.

Urbanization is pushing demand for convenience-driven consumption, while digitization and new-age consumption trends are transforming buying behaviours through the rise of e-commerce and digital payments.

Additionally, easy credit availability is making it simpler for consumers to spend on aspirational goods, while premiumization--the growing demand for high-end and branded products--is shaping the next phase of consumption. These factors combined are creating a strong foundation for India's consumer market expansion.

The quick commerce sector is poised for rapid growth, driven by urbanization, rising consumer expectations, and faster, localized deliveries.

Meanwhile, rural demand for consumer durables remains an untapped opportunity due to low penetration. As rural incomes rise and digital access improves, this segment will become a key driver of consumption growth in India.

Above all, India's per capita income has been growing at 8.7 per cent CAGR since 2015, fuelling increased discretionary spending. With a shift towards branded products and organized retail, India's consumer market is on a trajectory of historic expansion. (ANI)