The country's private consumption has surged from US$1 trillion in 2013 to US$2.1 trillion in 2024, reflecting a 7.2 per cent compound annual growth rate (CAGR), according to the Deloitte India and Retailers Association of India's latest report. This growth has outpaced leading global economies like the US, China, and Germany. Projections indicate that by 2030, India's GDP will hit US$7.3 trillion, with consumption driving 60 per cent of this growth, reinforcing India's position as a global consumption powerhouse.
Anand Ramanathan, Partner and Consumer Industry Leader Deloitte India, said, "India's consumer landscape is undergoing a fundamental transformation. The surge in discretionary spending, expanding digital commerce and increasing access to credit are redefining the rules of engagement for brands. By 2030, India's per capita income is expected to exceed US$4,000, unlocking new opportunities across sectors. Businesses have an incredible opportunity to tap into evolving consumer expectations—by balancing affordability, convenience and sustainability while harnessing data and technology to create highly personalised experiences. Those who embrace these shifts with agility and innovation will be best positioned to thrive in India's dynamic and rapidly expanding market."
Kumar Rajagopalan, CEO of the Retailers Association of India (RAI), said, "India's discretionary spending is entering a new phase of growth, driven by rising incomes, digital adoption and evolving consumer preferences. This joint report by RAI and Deloitte provides a roadmap for brands to navigate these shifts and create meaningful engagement with today's aspirational consumers. As organised retail and new commerce models expand, businesses that align with these trends will unlock immense opportunities for growth and innovation."
By 2030, the number of Indians earning over US$10,000 annually is expected to nearly triple, increasing from 60 million in 2024 to 165 million. This reflects the significant growth of the country's middle class and a fundamental shift towards discretionary spending. Several key forces are driving this consumption boom,
With rising affluence, consumers prioritise quality, convenience and experiences over price. Gen Z and millennials, who account for 52 per cent of the population, drive this shift, driving demand for premium brands, sustainable products, and personalised experiences. Credit access is expanding at an unprecedented pace, with credit card penetration set to triple from 102 million in 2024 to 296 million by 2030, enabling increased consumer spending. Fintech solutions and digital payments such as UPI are reshaping how consumers engage with brands, boosting e-commerce adoption and fuelling a new wave of digital-first consumption.
As disposable incomes rise, essential spending on food has declined—rural food expenditure has dropped from 60 per cent to 47 per cent, and urban food expenditure has declined from 48 per cent to 40 per cent. This reflects a growing inclination towards dining out, travel, wellness, and other discretionary categories such as fashion, fitness, home improvement, and consumer durables. Organised retail is expanding rapidly, registering a 10 per cent CAGR. It is expected to reach US$230 billion by 2030. Consumers are increasingly drawn to experience-led retail spaces, omnichannel shopping and hyper-personalised services, pushing brands to rethink engagement strategies.
