India is on track to become a global consumer powerhouse, outpacing major economies in the coming years, according to a new report from Angel One. The country’s consumption sector, which currently makes up 56% of its GDP, is the fastest-growing segment of its economy. Angel One forecasts that by 2034, India’s consumer market will triple, driven by the world’s fastest-expanding consumer base.
One of the main drivers behind this growth is the rise of nuclear families, which is leading to household expansion at a rate that outpaces population growth. This trend, highlighted in the report accessed by *Apparel Resources India*, is contributing to a surge in domestic demand. Additionally, India’s workforce expansion is expected to be a key factor in further boosting consumption patterns, positioning the country as a leader in global workforce growth.
Another major factor highlighted in the report is the sharp increase in national savings. Over the past 25 years, India has accumulated $12 trillion in savings, and by 2047, this figure is expected to grow exponentially to $103 trillion. This increase in savings is set to unlock substantial consumption potential, further driving economic growth.
Among the sectors poised to benefit the most is the apparel industry, which is expected to experience one of the fastest growth rates in discretionary spending. The report points out that recent tax reductions in India’s union budget are set to release Rs 1 lakh crore ($11.67 billion), which could fuel an additional Rs 3.3 lakh crore ($38.52 billion) in consumption, potentially contributing a 1% boost to India’s GDP.
The report also draws parallels with other economies, noting that discretionary spending has historically outpaced essential spending during periods of economic growth in countries like the US and China. India is expected to follow a similar path, with a growing appetite for non-essential goods and services as its economy continues to expand.
Angel One, an Indian stockbroker firm established in 1996, underscores the importance of this shift in India’s economic landscape, marking the country as a key player in the global consumer market.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
