India's private consumption is projected to reach nearly USD 1.9 trillion by 2030, driven by rising disposable incomes, rapid urbanisation, an expanding middle class, deeper internet penetration and the widespread adoption of digital payments, according to a joint report released by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Deloitte.
The report, titled 'Consumer Trends: IGNITEing Growth and Governance', was unveiled during the inaugural session of FICCI MASSMERIZE 2026 on Tuesday. It highlighted how demographic changes, increasing income levels and evolving consumer expectations are reshaping India's consumption landscape and creating new opportunities for businesses across sectors.
According to the report, India's consumer economy is being powered by more than one billion internet subscribers and 228 billion Unified Payments Interface (UPI) transactions worth around USD 3.6 trillion recorded in 2025. These factors, coupled with rapid digital adoption, are accelerating consumption and transforming purchasing behaviour across urban and rural markets.
The report observed that Indian consumers are no longer driven solely by affordability. Instead, they are becoming increasingly discerning and value-conscious, with growing expectations around product quality, sustainability, health, mental well-being and corporate responsibility. Consumers are also more vocal in expressing their preferences and concerns, compelling companies to adapt to a rapidly evolving marketplace.
It added that businesses operating in sectors such as fast-moving consumer goods (FMCG), retail and e-commerce must navigate an increasingly complex regulatory environment. Compliance requirements now extend beyond pricing and product availability to include product quality, safety standards, labelling norms, consumer protection regulations, environmental obligations, digital commerce rules and data governance frameworks.
Addressing the gathering during the report launch, Nidhi Khare, Secretary in the Department of Consumer Affairs under the Ministry of Consumer Affairs, Food and Public Distribution, stressed that improving product quality would be essential for sustaining India's economic growth.
"The time has come for us to realise that we cannot grow unless we address quality concerns in our manufacturing processes and in the way we sell products to consumers. There has been an increase in the number of consumer complaints," Khare said.
She noted that the government is working closely with industry to reduce consumer grievances through a more supportive and transparent regulatory framework. As part of this effort, she announced that authorities will begin issuing Improvement Notices under the Legal Metrology Act, allowing manufacturers and retailers an opportunity to rectify minor compliance issues before legal proceedings or compounding actions are initiated.
Khare also revealed that the department is developing 'Smart Standards', aimed at simplifying compliance and modernising India's quality framework. The initiative is expected to be launched on World Standards Day on October 14.
She further emphasised the importance of strengthening India's product testing ecosystem through technology-driven solutions. According to Khare, the government plans to integrate artificial intelligence (AI) and robotics into testing laboratories to improve efficiency, reduce manual intervention, lower testing costs for micro, small and medium enterprises (MSMEs), and enhance the accuracy and traceability of quality assessments.
Speaking on changing consumer behaviour, Jeyandran Venugopal, Chair of the FICCI Retail and Internal Trade Committee and President and CEO of Reliance Retail Ventures Ltd., said businesses must continuously innovate to meet the expectations of different consumer segments, particularly younger generations.
"The way Gen Z consumes products today is very different from how other generations consume products. Understanding and aligning products with the needs of different generations is important," he said.
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Echoing similar views, Manish Anandani, Co-Chair of the FICCI FMCG Committee and Managing Director of Kenvue India, described India's consumer economy as one of the world's strongest long-term growth stories. He said the FMCG sector continues to play a crucial role in driving inclusive economic development, generating employment and improving the everyday health and well-being of millions of consumers.
Anandani added that rising aspirations, digital transformation and a vibrant innovation ecosystem are enabling the sector to contribute meaningfully to India's vision of becoming a developed nation under the Viksit Bharat 2047 initiative.
Concluding the session, Jyoti Vij, Secretary General of FICCI, said Indian consumers today expect far more than affordable products. They increasingly seek personalised experiences, convenience, transparency, trust and sustainable choices. To remain competitive, businesses are responding by investing in technology, strengthening omnichannel retail strategies and accelerating innovation to meet changing consumer expectations.
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