Consumption in India to treble by 2025, says study

As per a Boston Consulting Group (BCG) study, consumption in India will treble to USD 4 trillion by 2025 as rising affluence have brought changes in consumer behaviour and spending patterns.

The study estimates a nominal year-on-year expenditure growth of 12%, which is more than double the anticipated global rate of 5%. This, as per the study, would make India the third-largest consumer market by 2025.

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The study, called 'The New Indian: The Many Facets of a Changing Consumer', also said that the reasons behind this change could be counted as India’s unique pattern of urbanisation, leading to rapidly growing emerging cities (those with populations of less than 1 million), a steep rise in the number of nuclear families, along with digital media.

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As per the report, elite and affluent income segments of the society will constitute 40% of all spending in the years to come.

The BCG study surveyed 10,000 consumers in 30 locations in India, consuming products in more than 50 categories.

(Image source: Sukam Solar)