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India on track to become global consumption capital, reveals new report

India is on the path to becoming the world’s leading consumption economy, as household growth, tax reforms, and a booming Gen Z population fuel discretionary spending.

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India is on the path to becoming the world's leading consumption economy, as household growth, tax reforms, and a booming Gen Z population fuel discretionary spending.

India is projected to emerge as the consumption capital of the world, driven by strong economic trends, rising per capita income, and a booming Gen Z population, according to a recent report by a media citing analysis from Angel One and Iconic Asset.

Household growth outpaces population rise

The report highlights that household formation in India is accelerating due to the increasing trend of nuclear families. This surge is outpacing overall population growth, emerging as a pivotal factor fueling higher consumption across sectors.

Currently, consumption constitutes 56% of India’s GDP, making it the most rapidly growing segment of the economy. Projections indicate that India’s consumption is expected to double by 2034, placing the country ahead of major global economies.

Future savings to unlock consumption potential

India’s economic landscape is set for a dramatic transformation with its total savings over the next 25 years projected at USD 103 trillion—a tenfold increase from USD 12 trillion between FY1997 and 2023. These savings are anticipated to unleash massive potential for incremental consumption.

Moreover, recent tax reductions in the Union Budget are expected to unlock ₹1 lakh crore, leading to an additional consumption boost of ₹3.3 lakh crore. This move alone could potentially add 1% to the national GDP, the report states.

A trajectory similar to the US and China

The report draws parallels with historical patterns seen in the US and China, where periods of rising per capita income triggered significant increases in discretionary spending. India is expected to follow a similar trajectory, with notable growth in categories such as consumer electronics, apparel, jewellery, and the experience economy.

Gen Z and modern retail: the next frontier

With 92% of retail trade still dominated by Kirana stores, the report underlines the untapped potential for modern retail to expand and gain market share. Furthermore, India’s Gen Z population already surpasses the total population of the US, and by 2035, every second rupee spent will come from a Gen Zer, adding a demographic edge to India’s consumption story.

India News

Rahul Gandhi attacks Centre ahead of Vladimir Putin’s India visit

Rahul Gandhi alleged that the government discourages visiting foreign dignitaries from meeting Opposition leaders, calling it a sign of “insecurity,” hours before Russian President Vladimir Putin arrives in Delhi.

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Rahul Gandhi

As Russian President Vladimir Putin arrives in Delhi today for the India-Russia Annual Summit, Leader of the Opposition Rahul Gandhi has renewed his charge that the Centre discourages visiting foreign leaders from meeting Opposition representatives. He called it a sign of “insecurity” within the government.

Rahul Gandhi alleges break in long-followed tradition

Speaking outside Parliament, Rahul Gandhi said that it has traditionally been the norm for visiting foreign leaders to meet the Leader of the Opposition, a practice he claims continued during the tenures of Atal Bihari Vajpayee and Manmohan Singh.

He alleged that the present government advises foreign dignitaries against such meetings. “When foreign leaders come, the government suggests they should not meet the Leader of the Opposition. This is their policy,” Gandhi said. He added that a meeting with the Opposition offers visiting leaders a broader perspective, as “we too represent India.”

Gandhi further stated that this approach reflects the government’s reluctance to allow engagement between the Opposition and foreign guests.

Former Foreign Secretary counters Gandhi’s remarks

Responding to Gandhi’s allegations, former Foreign Secretary and Rajya Sabha MP Harsh Vardhan Shringla said visiting leaders operate on very tight schedules and there is no protocol mandating a meeting with the Leader of the Opposition. He stressed that such interactions depend entirely on the guest’s time and preference, noting that the required meetings are those with the President and the Prime Minister.

Putin’s schedule packed with bilateral engagements

Russian President Vladimir Putin is set to land in Delhi this evening on Prime Minister Narendra Modi’s invitation. His itinerary includes:

  • A private dinner with PM Modi
  • Visit to Mahatma Gandhi’s memorial at Raj Ghat
  • Engagements at Bharat Mandapam and Hyderabad House
  • A banquet hosted by President Droupadi Murmu

The visit forms part of the 23rd India-Russia Annual Summit.

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TMC MLA Humayun Kabir suspended after Babri Mosque replica proposal sparks row

TMC suspended MLA Humayun Kabir after he proposed building a Babri mosque replica in Murshidabad, a move that drew criticism from the party and sparked political tension.

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Trinamool Congress on Thursday suspended MLA Humayun Kabir after he publicly announced plans to construct a replica of the Babri Masjid in West Bengal’s Murshidabad district. Party leaders said Kabir had earlier been cautioned for making such statements but continued to push ahead with the controversial proposal.

Kolkata Mayor Firhad Hakim said the MLA’s remarks were unacceptable, stressing that the party stood firmly by its secular stance. “We noticed that one of our MLAs suddenly declared he would build the Babri masjid. We had warned him before. As per the party’s decision, we are suspending him,” he said.

Kabir vows to continue project, may form new party

Kabir had planned to lay the foundation stone for the mosque replica in Beldanga on December 6. Sources indicated he is likely to resign from Trinamool on Friday and float a new party while continuing with the project.

The choice of date and nature of the project drew sharp criticism from the Trinamool leadership. Hakim alleged the move reflected a “divisional politics” strategy aligned with the BJP. “Why December 6? He could build a school or college. This is divisional politics,” he said.

Sources also said Chief Minister Mamata Banerjee was “hugely annoyed” by Kabir’s remarks and informed him that the party would not support or associate with such activities.

Governor raises concerns, administration on alert

West Bengal Governor Ananda Bose questioned why action was not being taken if the MLA’s statements risked creating a law-and-order issue. He said intelligence inputs suggested attempts to turn Murshidabad into a “hub of scandal,” adding that authorities would not remain silent if communal tensions were provoked.

Officials confirmed that while Kabir has permission to hold the December 6 event, the administration is maintaining a high-level alert in Murshidabad.

Minutes after his suspension, Kabir withdrew from Mamata Banerjee’s rally in the India–Bangladesh border district, where she was protesting against the Special Intensive Revision (SIR) of voter lists.

BJP attacks Kabir over remarks

BJP spokesperson Pratul Shah Deo condemned Kabir’s comments, claiming they were intended to “create communal tensions.” He said any attempt to raise structures linked to historical rulers would trigger disputes similar to the Babri Masjid conflict.

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Putin begins two-day India visit today, defence, energy and trade talks on agenda

Russian President Vladimir Putin arrives in New Delhi today for a two-day visit that will focus on defence, energy and trade, including S-400 deliveries and crude oil supply discussions.

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Russian President Vladimir Putin arrives in New Delhi today for a two-day visit that is set to focus on defence cooperation, energy supplies, mobility agreements and trade expansion. His trip includes a private dinner hosted by Prime Minister Narendra Modi and the 23rd India-Russia Annual Summit.

Key highlights of the visit

President Putin is scheduled to land in the capital this evening, where an informal dinner with PM Modi will set the stage for formal discussions on Friday. He will receive a ceremonial welcome in the morning before visiting Rajghat to pay homage at Mahatma Gandhi’s memorial. The two leaders will then meet at Hyderabad House for the annual summit, followed by a working lunch.

India is expected to raise the issue of pending military hardware deliveries, which have slowed since the Ukraine conflict began. The agenda also includes additional S-400 air defence systems — part of a USD 5 billion contract under which three squadrons have already been delivered. Two more units are expected by mid-next year.

Kremlin spokesperson Dmitry Peskov has indicated that talks may also touch upon India’s interest in the Su-57 fifth-generation fighter aircraft, with New Delhi currently assessing several next-generation platforms.

Energy cooperation will be another crucial component of the dialogue. Russia is expected to update India on efforts to maintain steady crude oil supplies amid US sanctions that have impacted shipments. Peskov noted that supplies may dip briefly, but Moscow is working to stabilise flows.

On the sidelines, Defence Minister Rajnath Singh and his Russian counterpart Andrey Belousov are expected to hold discussions on key military programmes.

President Putin’s visit comes as India navigates recent friction with Washington, including steep tariffs — 50 per cent across several categories and an additional 25 per cent linked to Russian crude oil imports.

The Russian President is also expected to brief PM Modi on the latest US diplomatic moves concerning the Ukraine conflict. India continues to advocate for a resolution based on dialogue and diplomacy while refraining from criticising Moscow.

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