According to a study by Fitch Solutions, India’s consumer market by 2027 may secure third place in the world after the U.S. and China. It is predicted that due to the increase in real household spending, India will rise in the global ranking by two lines. To date, the country occupies the fifth place.
Analysts also believe that India will outpace other developing countries in Asia, including Thailand, the Philippines and Indonesia, in terms of per capita spending growth.
BMI estimates that India’s household spending will exceed $3 trillion as disposable income grows at 14.6% per year through 2027. By that time, 25.8% of Indian households are projected to reach an annual disposable income of $10,000.
“The majority of these households will be located in the economic centers such as New Delhi, Mumbai and Bengaluru. The wealthier households are mainly located in urban areas, making it easy for retailers to target their key target markets,” BMI said.
As of the third quarter of 2023, about one-third of India’s population is between the ages of 20 and 33. Spending by the population is set to rise, driven in part by a “technology-literate, urban middle class with increasing amounts of disposable income that would encourage spending on aspirational products such as consumer electronics.”
Recently, more and more global brands have been coming to India. Apple opened its first stores in the country in spring. And Samsung announced plans to open 15 premium stores in Delhi, Mumbai and Chennai.
