What: India's consumer landscape is undergoing a fundamental shift as affluent households are projected to reach 30% by 2035, while digital infrastructure, Gen Z preferences, and women's increasing economic influence reshape retail dynamics.

Why it is important: As traditional retail markets mature, India's evolving consumer landscape offers a blueprint for future growth, with its unique combination of digital innovation, demographic dividends, and infrastructure development creating new paradigms for global retail.

India's transformation into a global consumer powerhouse is reshaping retail paradigms, with affluent households projected to increase from 19% to 30% by 2035. This shift is characterized by a dramatic evolution in consumer behavior, moving beyond basic necessities to discretionary spending in education, travel, health, and leisure. India's Gen Z, surpassing the entire US population in size, is emerging as a powerful force that prioritizes immersive experiences and authentic engagement. The rising influence of educated women, whose literacy rates have doubled over four decades, is driving growth in sectors like packaged food, appliances, and online shopping. This transformation is supported by robust digital public infrastructure enabling seamless connectivity and personalized experiences, while massive infrastructure investments exceeding a trillion dollars are upgrading roads, bridges, and ports, fundamentally transforming logistics and connectivity.

IADS Notes: Recent market developments validate BCG's projections, with 27 new international brands entering India in early 2025 and the country ranking as the most attractive emerging market for retail expansion. The digital transformation is evident in Coresight's identification of GenAI-driven personalization as a key trend, while Euromonitor reports 48% of brands incorporating experiential rewards. This evolution is supported by substantial infrastructure development, with plans to add over 2 million square feet of retail space and a 46% increase in retail space leasing across major cities, creating new opportunities for retail expansion beyond Tier 3 cities.

When Indian consumers shape global trends