Bazaars To Get More Crowded: India Set To Become The Third-Largest Consumer Market Globally, Says WEF ReportRepresentative image (Sanjeev Verma/Hindustan Times via Getty Images)

According to a report released by the World Economic Forum (WEF), India will grow to be the third-largest consumer market in the world by 2030, behind only China and the US.

The report notes that consumer spending in India would increase from the current $1.5 trillion to nearly $6 trillion by 2030, transforming the country from a ‘bottom-of-the-pyramid economy to a truly middle-class led one.’

“India will see a tremendous jump in consumer spending driven by increased incomes, a billion diverse internet users and a very young population. The new Indian consumer will be more affluent, and more willing to spend but will have more evolved preferences and aspirations than consumers of the past,” the report noted.

WEF also states that the Indian economy is better positioned than other economies like China to deal with global recessionary trends.

“Nearly 60 per cent of India’s GDP is driven by domestic private consumption, as compared to 40 per cent in China. Hence the economy is protected to a great extent against external shocks and cycles of low or high public investment.

Breakthrough states

The report has identified ten large “breakthrough” states that will drive India’s consumption story over the next decade: Kerala, Karnataka, Andhra Pradesh, Telangana and Tamil Nadu in the south; Delhi, Haryana and Punjab in the north; and Maharashtra and Gujarat in the west.

India’s rural per capita consumption is also expected to grow faster than in urban areas, with rural population imitating the consumption patterns of their urban counterparts.

Also Read: Evaluating The Economic Strategy For India

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