‘Country’s youngest generation to spend Rs 168 lakh crore by 2035’- Report

New Delhi| The country’s Generation Z, that is, the youngest generation born between 1997 and 2012, is playing an important role in increasing consumption through its expenditure. By 2035, this population will spend 2 trillion dollars (about 168 lakh crore rupees), which will further accelerate the consumption important for the country’s economy.

According to a report by Boston Consulting Group (BCG) and Snap Inc, a parent company of Snapchat, India’s Generation Z population is more than 37.7 crore. This is the largest generation ever to live in the country. Their collective expenditure is $860 billion, which is about 43 per cent of India’s total consumption.

The report states that of the $860 billion, close to $200 billion is spent by this population itself. The remaining $660 billion is spent by others on purchases influenced by their recommendations or priorities. Trends in the spending of the Generation Z population suggest that by 2035 it will reach a level of $2 trillion.

Pulkit Trivedi, Managing Director, India, Snap Inc, said, India is a young nation with a generation Z population of over 37.7 crore. This population will shape the future of India’s development in the next two decades through consumption. By 2025, it is estimated that the Generation Z population will directly spend $250 billion, and by 2035, this figure will reach $1.8 trillion. The report states that one member in every four Generation Z already has a job. By 2025, every other Gen Z will have a source of income.

Despite the opportunities, most businesses have not taken advantage of Generation Z, the report said. Only 15 per cent are actively taking steps to take advantage of them. Nimisha Jain, Senior Partner and Managing Director, BCG India, says that the impact of Generation Z population is not limited to selected categories. This generation is affecting expenditure on everything from fashion, food and drinks to automobiles and consumer durables. 80 per cent of the Generation Z population enlists the help of photographs, GIFs and immersive visuals to express themselves and connect with their circle.