India is all set for consumption boom—with a caveat

livemint.com:

roti-kapda-makan (food, clothes, housing) troika dropped to below 50% in 2019-20, making way for other items that improve the quality of life—notably health, education, transport, communication, and recreation. A fortunate confluence of factors has the potential to seed rapid consumption growth in the coming two to three decades. First, the much-touted demographic dividend puts India at an advantage over East Asian rivals such as China and Thailand.

India has 30-odd years before its median age reaches 40, the point when the labour force starts ageing. It is now in a sweet spot where the working-age population is growing faster than the total population. This gives it a long runway to grow and take off.

Second, its current macroeconomic stability boosts consumer confidence. Third, its sheer market size makes up for other shortcomings. For example, Indonesia has a higher per capita income and about the same median age, but India has five times as many people in the 15-64 years age group.

Finally, domestic consumer sentiment is buoyant: India has held the highest national score in the monthly IPSOS global consumer confidence index since December 2023. By 2030, it is estimated that India will have 227 million millennials (those born during 1981–1996) and 374 million from Gen Z (born 1997–2010). Together, they will account for 40% of the population.

Millennials are likely to form the bulk of consumption spending as they will be in their peak spending years (34-49 years in 2030). But it is Gen Z that has the potential to be a trend-shaper. Surveys show that Gen Z values experiences, loves travel, is ecologically conscious, seeks work-life balance, and is financially savvy.