IMA recently published its ‘Vision 2030: India’s Growth Frontiers’ report, which offers a comprehensive analysis of the factors driving the country’s economic transformation. This report aims to provide strategic insights and recommendations to navigate what is undoubtedly an exciting and dynamic environment, while decoding the nuances of India's economic journey in the years ahead. Given the sheer length of the report, we will be sharing bite-sized extracts from the study over the next few weeks.

The second episode of this series looks at how India's consumer markets are transforming, reflecting broader shifts in its economy and society. For instance:

• High-income households will double by 2030 and upper-middle-class ones will surge by 60%, driving significant consumption growth. Per capita income may rise from USD 2,860 in 2024 to USD 4,660–5,500 by 2030, fuelling a consumption boom.
• With a young population and low dependency ratio, India’s demographic dividend will drive increased spending, especially among millennials and Gen Z.
• By 2030, over 40% of India will be urbanised, with rural consumption increasingly mimicking urban trends due to rising aspirations and access to modern retail.
• UPI and the internet are transforming consumer behaviour, with digital payments projected to drive 90% of e-Commerce transactions.
• Volume growth, premiumisation and modernisation will dominate, with rising demand for premium goods in categories like cars, air travel, and luxury goods.
• Indian consumers prioritise cultural authenticity over westernisation, with local values influencing consumption patterns, even as they modernise.
• Mobility and the internet are blending regional traditions, with younger consumers open to experimentation across food, fashion, and leisure.