India's consumption story is multi-decade. A young population, rising incomes, urbanisation, and digital connectivity are creating a compounding growth narrative that is unmatched in any other major economy.
India is on track to become the world's third-largest consumer market by 2030, behind only the United States and China. The demographic profile is compelling: a median age of 28, a growing middle class, and rising urbanisation. The income trajectory is equally compelling: India's per capita GDP is expected to cross $5,000 by 2030, creating a mass-market consumer economy that did not exist a decade ago.
For investors, the India consumption story offers both opportunity and challenge. The opportunity is the long-term compounding potential of consumer businesses in a growing economy. The challenge is the valuation discipline required to invest at prices that leave room for that compounding to create returns.
The sector lens
At IIG, we analyse the India consumption story through a sector lens. Consumer technology — digital commerce, fintech, food delivery — is at the forefront. Branded consumer goods — FMCG, retail, apparel — represent the middle ground. Financial services — consumer lending, insurance, wealth management — provide the financial infrastructure that enables consumption. Each of these sectors offers compelling, but different, investment opportunities.
The India consumption story is not a single narrative — it is a collection of sector stories that share a common theme: a billion consumers entering the formal economy for the first time.