Gen Z Emerging as a Major Economic Force in India, BCG Report Says
Young Indians are influencing billions of dollars in consumer spending, from fashion and travel to entertainment and investments.
New Delhi: India’s consumer market is witnessing a major shift as Generation Z emerges as one of the most influential groups shaping spending and consumption patterns across the country.
According to data from the Boston Consulting Group (BCG), around 377 million Indians born between 1997 and 2012 are influencing nearly 43 percent of the country’s total consumer spending, estimated at around $860 billion.
What makes the trend particularly significant is that most members of Gen Z are not yet part of the formal workforce. Only about one fourth of this generation is currently employed or engaged in business.
Despite their limited direct income, their preferences are having a strong impact on the market. Of the estimated $860 billion in spending influenced by Gen Z, around $660 billion is classified as influenced spending. This refers to purchases where young people decide which products, apps or brands to choose, while their parents often make the actual payments.
The influence of this generation is expected to grow further as more of its members enter the workforce.
Experts estimate that by 2030, around 36 percent of Gen Z Indians will be formally employed. By 2035, their annual spending is projected to double to approximately $2 trillion.
The report also points to a change in spending priorities. Gen Z consumers are increasingly spending on lifestyle products and experiences, including branded footwear, fashion, outdoor dining, travel and OTT subscriptions.
Their influence is not limited to consumer markets. Young Indians are also becoming increasingly active in financial investments, including the stock market and mutual funds.
People under the age of 30 now account for nearly half of new investment accounts, highlighting the growing role of younger Indians in the country’s financial ecosystem.
With their growing purchasing influence, changing lifestyle preferences and increasing participation in investments, Gen Z is expected to play an even greater role in shaping India’s economy in the years ahead.