India’s consumer economy to reach US$1. 9 trillion by 2030: Report
India’s consumer economy is expected to approach US$1. 9 trillion by 2030, as changing consumer behaviour, AI adoption and evolving regulations reshape the FMCG, retail and e-commerce sectors, according to a. . .
India’s consumer economy is expected to approach US$1. 9 trillion by 2030, as changing consumer behaviour, AI adoption and evolving regulations reshape the FMCG, retail and e-commerce sectors, according to a Deloitte India report released in association with FICCI. The report, titled “Consumer Trends IGNITEing Growth and Governance,” examines how businesses are responding to changes in consumer preferences, technology and the policy environment. It noted consumers are becoming more informed, digitally connected and health-conscious, while showing lower brand loyalty. Purchase decisions are increasingly influenced by transparency, quality and clean-label products. Omnichannel retail, e-commerce and quick commerce are also changing shopping behaviour. AI-powered recommendations, creator ecosystems and digital platforms are increasingly influencing how consumers discover, evaluate and purchase products, the report said. The report’s consumer survey highlighted the growing shift toward online and AI-led shopping. Food and grocery ranked among the top three categories showing the greatest increase in online purchases for 90% of respondents, followed by Beauty and Personal Care at 56% and health and wellness at 46%. AI is also becoming an important part of product discovery. The report found that 64% of Indian consumers now use AI tools instead of traditional search engines when researching products. More than 50% are already using AI to learn about or compare products, while ~50% would consider using it to find the best deals or prices and create personalised shopping wishlists. The report identified resilient supply chains, AI as a core business operations layer, instant and integrated commerce ecosystems, sustainability and the global expansion of Indian consumer brands as key trends shaping the sector. It also highlighted changes in the regulatory environment covering food safety and labelling, packaging sustainability and EPR, GST, consumer protection, data privacy and DPDP implementation, AI governance, influencer marketing, legal metrology and emerging e-commerce regulations. The report said Ease of Doing Business remains important for long-term growth but noted challenges from overlapping regulations, fragmented implementation and compliance complexity. It recommended greater regulatory harmonisation, risk-based compliance frameworks, greater digitalisation of compliance processes and more predictable policy implementation. The report also recommended that businesses accelerate AI adoption, modernise supply chains, strengthen sustainability initiatives, expand the global presence of Indian consumer brands, improve regulatory preparedness and establish AI governance frameworks. Commenting on the report findings,Anand Ramanathan, Partner & Consumer Industry Leader, Deloitte India, said, "India's consumer economy is expected to approach US$1. 9 trillion by 2030, opening up substantial opportunities for businesses that can respond to rapidly evolving consumer expectations and changing market dynamics. Growth will increasingly be shaped by how effectively organisations use AI, build resilient operations, participate in connected commerce ecosystems and translate consumer insights into differentiated experiences. At the same time, regulatory predictability, digital trust and Ease of Doing Business will remain critical to supporting innovation and investment. Looking ahead, the convergence of technology, consumer choice and governance will continue to reshape how businesses operate, compete and create value across India's FMCG, retail and e-commerce sectors. "The new consumer is increasingly prioritising transparency, quality and personalised experiences, while AI, creators and digital ecosystems are reshaping product discovery and purchasing decisions. It added that governance, sustainability and Ease of Doing Business are emerging as key factors supporting innovation, investment and long-term competitiveness. The report’s recommendations focus on AI adoption, stronger supply chains, regulatory preparedness and the global expansion of Indian consumer brands as India’s consumer economy enters a period of further technological and behavioural change.