Tectonic shifts in India’s economic, technological, and cultural dynamics are propelling a remarkable transformation in its consumer landscape. By 2027, India’s household spending will exceed $3T as disposable income rises by a compounded 14.6% annually. India’s consumer market is set to become the world’s third largest by 2027 as the number of middle to high-income households rises.

 

Research reveals that in 2023, around 40 million individuals, constituting 4 percent of the population aged 15 years and above, belonged to the affluent category, with an annual income exceeding USD10,000. Projections indicate that this figure is set to more than double over the next five years, indicating a significant expansion of purchasing power.

 

The rapid increase in consumption trends is also propelled by India’s digital economy. With over 692 million internet users as of 2023, internet penetration is reshaping how consumers shop. This figure is expected to reach more than a billion by 2030. The graph below highlights India’s journey from a nascent digital market in 2010 to its projected dominance by 2030