New Delhi [India], March 21 (ANI): According to a report by Angel One, Iconic Asset, India is poised to emerge as the global hub for consumption, surpassing leading economic powers.
In India Consumption makes up 56 percent of the GDP Moreover, it represents the quickest-expanding sector within its economy. According to the report, fueled by having the largest expanding customer market globally, India’s consumption is expected to increase twofold by 2034.
The expansion of households in India due to the trend towards nuclear families is surpassing overall population growth, becoming the primary factor boosting consumption. Additionally, India is poised to be at the forefront of global workforce expansion.
Moreover, the report forecasts that India’s savings over the coming 25 years will amount to tenfold the total savings from the previous quarter-century. According to the document, between fiscal year 1997 and 2023, India accumulated savings totaling $12 trillion; this figure is expected to soar tenfold to reach approximately $103 trillion by 2047. Such growth could significantly boost additional consumer spending capacity.
The recent tax reductions in the union budget are expected to free up Rs 1 lakh crore, which could subsequently lead to an additional consumption surge of Rs 3.3 lakh crore. This increase holds the potential to stimulate growth across the nation’s economy. GDP by 1 per cent.
According to the report, during times of growth in economy and income, both the United States and China saw discretionary spending exceed non-discretionary expenditures, and India looks set to follow this same pattern.
" Consumption During the period when per capita income saw significant growth, spending in the U.S. surged tenfold. The report suggests that as per capita income increases, India could experience comparable expansion in consumer expenditure.
Consumer electronics, apparel, accessories (including jewelry), and the experience economy will be the quickest-growing sectors in non-essential spending.
Given that 92 percent of retail transactions still go through Kirana stores, there is significant potential for contemporary retailers to expand and increase their market share.
India boasts a Gen Z population larger than the total populace of the United States. By 2035, one out of every two rupees expended will originate from this demographic group. This trend significantly contributes to India’s growing consumer spending narrative. (ANI)
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