Consumer, Conquerer

The ₹65-lakh crore consumer market in India, now the fourth-largest in the world, is poised for transformative shifts over the next two decades, aiming to rank among the Top 2 globally

- ARNAB DUTTA

IN 1991, when the government took the bold step to liberalise the economy and embrace global integration, India was a far cry from its current status as a major economic power. Its position among the world’s largest economies was well outside the Top 10. Fast forward nearly three decades, and India now not only ranks among the Top 5 largest economies but also boasts a consumer market within the same tier. This, however, is just the beginning. Perched now at a critical juncture in its modern history, India is poised for a significant change. The government’s commitment to transforming India into an economic superpower by 2047— marking a century of independence—will see the consumer market play a pivotal role. The past 30 years have demonstrated the resilience of Indian consumers, and the next two decades are expected to herald a new era in global consumerism.

Currently valued at over $800 billion, India’s consumer market ranks behind the US, China, Germany, and Japan. While it has maintained this position for some time, projections indicate that consumer spending in India will surge over the next decade. According to a recent estimate by market intelligence firm Fitch Group’s BMI Research, India is set to become the third-largest consumer and retail market by 2027, surpassing Germany and Japan. The market is expected to achieve a remarkable 25% compound annual growth rate (CAGR), crossing the $1-trillion threshold by 2027 and reaching $2 trillion by 2032. While precise forecasts for 2047 remain uncertain, experts largely agree that India’s consumer market is expected to emerge as one of the Top 2 globally, with the potential to surpass the US, thereby underscoring the inherent aspirations present in the Indian economy.