India Consumption Capital: Report claims – India on track to leave big countries behind

New Delhi| The report further said that the relief given to taxpayers on the tax front in the FY 2025-26 budget will yield Rs 1 lakh crore, which will boost incremental consumption of Rs 3.3 lakh crore. It has the potential to increase Indian GDP by one percent.

The country is ready to follow the path of America and China on the consumption front
Angel One and Iconic Asset said in their report that during economic and income expansion, discretionary consumption remained higher than non-discretionary spending in both the US and China. India is also now ready to follow the same path.
Consumption spending in the US increased by a factor of 10 in a period of strong growth in per capita income. With per capita income increasing, India is also expected to see a similar increase in consumption expenditure.

Other highlights of the report…
Consumer electronics, apparel, jewellery and accessories are fast-emerging segments in discretionary consumption. 92 per cent of retail trade still takes place through grocery stores. There is also a huge opportunity for the modern retail business to grow and gain market share.
India has more generation Z than the total population of America. Every second rupee spent until 2035 will come from Generation Z’s pocket, strongly supporting consumption growth.

Global consumption will account for 16 per cent
India’s share of the world’s total consumption could rise to 16 per cent by 2050, up from 9 per cent in 2023. According to the McKenzie Global Institute report, only North America will be ahead of India with a 17 per cent share.