India has the world’s fastest growing consumer base: Angel One report

India is set to emerge as a global consumer hub, outpacing major economies, according to a report by Angel One. Consumption is the country’s fastest-growing economic sector, currently accounting for 56% of its GDP. The report projects that India’s consumption will triple by 2034, driven by the world’s fastest-growing consumer base.

A key factor behind this surge is the rise of nuclear families, which is leading to household expansion at a rate exceeding population growth, according to Angel One’s report, accessed by Apparel Resources India. Additionally, India is expected to lead global workforce expansion, further driving consumption patterns.

The report also highlights a sharp increase in national savings. Over the past 25 years, India’s total savings amounted to $12 trillion, and this figure is expected to grow tenfold to $103 trillion by 2047. This surge in savings is expected to unlock significant consumption potential.

Among the industries set to benefit, the apparel sector is expected to see one of the fastest growth rates in discretionary spending. Recent tax reductions in the union budget are projected to release $11.67 billion (Rs 1 lakh crore), fueling additional consumption worth $38.52 billion (Rs 3.3 lakh crore). This could contribute a 1% boost to India’s GDP.

The report notes that discretionary spending has historically outpaced essential spending during economic growth in countries like the US and China, and India is expected to follow a similar trajectory. Angel One is an Indian stockbroker firm and was established in 1996, according to its website.