According to a recent assessment, India is on pace to surpass big nations and emerge as the global center of consumption. India’s consumption is the fastest growing sector in the world and makes for 56% of the nation’s GDP.

According to a survey by Angel One and Iconic Asset, India’s consumption is expected to quadruple by 2034 during the following ten years. The growing number of nuclear households is one of the main causes of rising consumption. Spending is rising as a result of the nation’s households growing faster than the population.

India is also expected to take the lead in the global workforce expansion, which will increase economic activity even more. India’s remarkable potential for savings is also highlighted in the report. The savings in the nation totaled $12 trillion between 1997 and 2023. This amount is predicted to increase tenfold over the following twenty-five years, reaching $103 trillion by 2047. Significant prospects for higher expenditure and economic expansion will be made possible by this increase in savings.

Consumption will also increase as a result of recent tax cuts included in the Union Budget. According to the research, these tax cuts will free up Rs 1 lakh crore, which might result in an additional Rs 3.3 lakh crore in spending and a 1% increase in India’s GDP.

India is anticipated to follow a global trend in which spending on experiences, clothing, gadgets, and accessories (including jewelry) increases more quickly than spending on necessities.

According to the paper, China and the US both experienced periods of economic boom in which discretionary consumption exceeded basic spending, and India is probably going to experience a similar trend.

“During the period when per capita income rose sharply, consumption spending in the US climbed tenfold. Similar increases in spending can be seen in India when per capita income rises, the survey continued.

Even with the growth of contemporary retail, tiny neighborhood Kirana businesses still account for 92% of India’s retail sales. According to the survey, organized retail has a great chance to grow and gain a bigger market share.The research also emphasizes how India’s youthful population propels consumerism. There are more Gen Zers in India than there are in the US.

Gen Zers will account for every second rupee spent in India by 2035, contributing to the nation’s rapidly increasing spending.