The report states that as disposable incomes rise, rural food expenditure has dropped from 60 per cent to 47 per cent
Shedding light on the surge in discretionary spending, expanding digital commerce and increasing access to credit, a report has revealed that India’s private consumption has surged from USD one trillion in 2013 to USD 2.1 trillion in 2024 (7.2 per cent compounded annual growth rate), outpacing the United States (US), China and Germany.
Deloitte India with Retailers Association of India (RAI), in its ‘India’s discretionary spend evolution: A roadmap for brands’ report stated that by 2030, India’s gross domestic product (GDP) is projected to reach USD 7.3 trillion, with consumption contributing 60 per cent to the economy, solidifying the country’s status as a global consumption powerhouse.
“India’s consumer landscape is undergoing a fundamental transformation. The surge in discretionary spending, expanding digital commerce and increasing access to credit are redefining the rules of engagement for brands. By 2030, India’s per capita income is expected to exceed USD 4,000, unlocking new opportunities across sectors,” stated Anand Ramanathan, Partner and Consumer Industry Leader, Deloitte India.
Reflecting the growth of the country’s middle class and a shift towards discretionary spending, the report added that by 2030, the number of Indians earning over USD 10,000 annually is expected to nearly triple, increasing from 60 million in 2024 to 165 million. Credit access is expanding at an unprecedented pace, with credit card penetration set to triple from 102 million in 2024 to 296 million by 2030, enabling increased consumer spending, as per the report.
“India’s discretionary spending is entering a new phase of growth, driven by rising incomes, digital adoption and evolving consumer preferences. This joint report by RAI and Deloitte provides a roadmap for brands to navigate these shifts and create meaningful engagement with today’s aspirational consumers,” highlighted Kumar Rajagopalan, Chief Executive Officer (CEO), Retailers Association of India (RAI).
The report added that as disposable incomes rise, essential spending on food has declined—rural food expenditure has dropped from 60 per cent to 47 per cent, and urban food expenditure has declined from 48 per cent to 40 per cent.
Organised retail is expanding rapidly, registering a 10 percent CAGR. It is expected to reach USD 230 billion by 2030. Consumers are increasingly drawn to experience-led retail spaces, omnichannel shopping and hyper-personalised services, pushing brands to rethink engagement strategies, the report added.
