Summary
Rising Affluence and New Opportunities
Recognising growth trends as they reach an inflection point is one of the hallmarks of successful investing. One such trend is the profound transformation of the Indian consumer landscape. This is driven by rising incomes, evolving spending habits and accelerating household discretionary spending. With per capita income surpassing US$2,600 in FY2025 and projected to reach US$4,500 by 2030, the share of non-essentials in consumption is expected to rise from 36% to 43% of the overall consumption mix, propelled by premiumisation and the expansion of the middle class.
Indians are no longer just buying what they need; they are increasingly buying what they want. This is the structural story of the coming decade: as per capita income is expected to approach US$4,500 by 2030, India is forecast to add hundreds of millions of new consumers who can afford premium housing, branded products, better health care, travel and financial services.1 The world’s largest youth cohort is entering its prime earning years as digital access, credit penetration and wealth effects are reshaping how India consumes. That points to a structural shift in consumption and the creation of new growth opportunities.
In this paper, we cover the following:
- Favourable demographics and a rising middle and affluent class driving premium demand
- Credit access and consumer leverage fueling premiumisation
- Financialisation of savings – wealth effect
- Digitalisation and social media influence
- Improving rural standards of living
India’s nominal GDP is forecast to grow at a CAGR of 11% between FY2024 and FY2030, reaching US$7.3 trillion. Consumption will contribute 60% of the growth, which could make India the third-largest consumer market by 2026. Private consumption has already doubled from US$1 trillion in 2013 to US$2.1 trillion in 2024, a faster growth rate than China, the US and Germany over the same period.
Affluent households at the upper end of the income spectrum are thriving. Policy support for infrastructure and domestic manufacturing, combined with a wealth effect from rising equities, real estate and gold, is fueling confidence and spending power.
Footnotes:
- Source: International Monetary Fund, October 2025.
WHAT ARE THE RISKS
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