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By:

C.S. Krishnamurthy

21 June 2025 at 2:15:51 pm

Investing in India’s Consumption Story

As India’s 1.4 billion consumers trade thrift for aspiration, private consumption now drives nearly 60 percent of the GDP, fuelling a transformation that investors can scarcely afford to ignore. Think about your own life over the past five years. You would have probably ordered food from Swiggy, bought something on Amazon or Flipkart, upgraded your phone, or subscribed to Netflix or Spotify. Your parents might have bought an air-conditioner or even a new car. Someone in your family has likely...

Investing in India’s Consumption Story

As India’s 1.4 billion consumers trade thrift for aspiration, private consumption now drives nearly 60 percent of the GDP, fuelling a transformation that investors can scarcely afford to ignore. Think about your own life over the past five years. You would have probably ordered food from Swiggy, bought something on Amazon or Flipkart, upgraded your phone, or subscribed to Netflix or Spotify. Your parents might have bought an air-conditioner or even a new car. Someone in your family has likely swapped the local kirana shop for a mall or a quick-commerce delivery app. None of this is accidental. It is the power of consumption that is quietly redefining India’s economy. The word ‘consumption’ may sound academic or technical, but it is simple. It is everything we buy - from morning chai to an OTT subscription, from vegetables to smartphones, from medicines to clothes. Every rupee you spend is consumption, and in India, we are spending more than ever before. Private final consumption expenditure has become the principal engine of growth, cushioning the economy against global shocks and export slowdowns. In an era when manufacturing and exports face headwinds, domestic demand has emerged as India’s most reliable growth driver. In short, India’s economy is not just about factories or exports. It thrives on what 1.4 billion people choose to buy every day.  Here is the kicker: private consumption now makes up nearly 60 percent of India's entire GDP. Changing demographics India sits at a demographic inflection point. A huge chunk of our population is young, working, and earning decent salaries. Unlike countries like Japan or Italy where populations are aging and shrinking, India’s workforce is young, expanding and ambitious. More people working means more money coming in, which mean more spending. But it is not just about numbers. It is about what people are spending on. A generation ago, most families spent their income on basics - food, rent, and school fees. Today, after meeting essentials, they still have something left. That extra money is transforming the way India lives. We are buying cars, air tickets, branded clothes, health insurance, gym memberships, expensive coffee and taking foreign vacations. This shift from ‘need’ to ‘want’ is what economists get excited about - a sign of a society that is not just surviving but thriving. Between 2020 and 2024, consumer spending jumped by more than 30 percent. By 2030, the number of Indians able to afford discretionary purchases will have risen by half. Per-capita income, now around $2,800, is projected to approach $4,000 within a few years. In real terms, that would push tens of millions into the ‘consuming class,’ that is households earning enough to influence not just local markets but global corporate strategies. India is poised to become the world’s third-largest consumer market by the end of the decade, trailing only China and the United States. Automobiles are flying off the lots, especially in smaller cities. Two-wheelers and electric vehicles are joining the mainstream. Fast-moving consumer goods form the steady heartbeat of the economy. E-commerce has become second nature, driven by digital payments and doorstep delivery. Financial products are spreading: more Indians hold credit cards, mutual funds and insurance. Healthcare, diagnostics and wellness apps are thriving. Restaurants, OTT platforms and tourism are booming as Indians increasingly value experiences as much as possessions. The beauty of this boom is its breadth. From a packet of Parle-G to a BMW, both feed the same consumption engine at different ends of the spectrum. And unlike earlier cycles, the surge is not confined to big cities. Tier-2 and Tier-3 towns from Surat to Siliguri now power demand for everything from smartphones to SUVs, creating a geographically diverse and durable growth base. Investor’s opportunity For investors, the implications are clear. Firms catering to domestic consumers - from soap-makers to smartphone vendors - enjoy a vast and resilient market. Over the past two decades, consumption-linked companies have consistently outperformed others, because people keep buying even in downturns. One way to tap into this momentum is through thematic mutual funds that focus on consumption. Such funds spread investments across sectors, reflecting the diversity of consumer demand. For newcomers, they offer an easier, less risky way to benefit from the theme without having to pick individual stocks. Yet patience is crucial. Consumption booms unfold gradually, occasionally tempered by inflation or shifting tastes. Over the long term, however, the trajectory remains upward. Investing in India’s consumption is, in effect, investing in its people—millions of households aspiring to a better life. It is also an implicit bet on stability: on incomes rising, cities expanding, and policy remaining supportive of domestic enterprise. This theme suits young investors seeking long-term growth, planners saving for retirement or education, and those looking to diversify through exposure to multiple industries. It rewards discipline and a long-term mindset rather than speculation. Consumption is not merely an economic statistic but the pulse of a changing nation. Every time someone buys a first smartphone, books a flight, or steps into a mall instead of a roadside stall, they participate in India’s transformation. For investors and policymakers alike, one truth stands out: India is not just producing or exporting more but  spending  more. And where its people spend, growth inevitably follows. (The writer is a Bengaluru-based freelancer. Views personal.)

‘Everything in Mumbai is beautiful’

Pic: Ashish Rane
Pic: Ashish Rane

Very few photojournalists have captured Mumbai on their lenses like Ashish Rane has done. With a work experience of more than 25 years Rane has witnessed the evolution of Mumbai, capturing its pulse with his camera. He spoke with Prithvi Asthana on the evolving world of photojournalism and Mumbai. Excerpts…


How did your career start as a photojournalist? What inspired you?

After graduating from J.J. (Jamsetji Jeejabhoy) School of Art, I initially worked in advertising agencies. I realised the 9-5 job was not for me, and I wanted to do something different in my life. Meanwhile, my father handed me a camera, and with that, I began shooting at the weddings side-by-side while doing my job. Gradually, I started to feel a sense of connection with the camera and considered a career in journalism. The efforts bore no fruit. Accidentally, a former BJP MP, Ramdas Nayak was shot dead, and I was the first one to reach there. I was a freelancer back then, so the question was, Who should I give these photos to? Then, my friend, Naresh Kharad, helped me connect with Organiser, a magazine affiliate with the RSS (Rashtriya Swayamsevak Sangh), and handed over to them the rolls and the photos. The next day, there was a public rally at Shivaji Park where leaders like Bal Thackeray and L.K. Advani were present. When I reached there to cover the event, a large supplement was being distributed. After getting a hand on one, surprisingly, I found the supplement contained my photos, with ‘All photos by Ashish Rane’ written on it. This kick-started my career and inspired me to keep working in this field.


What was your first assignment as a photojournalist?

My first official assignment dates back to 1994, when I was working for Samyantar and Abhiyan magazine. Aishwarya Rai had won the Miss World, and I had to cover her trip as soon as she landed at Mumbai airport.


What qualities should a photojournalist have?

While there are various qualities, one vital thing for this field is having a camera by your side for 24 hours. Secondly, one should be sharp and alert to capture the events happening in the surroundings. Essential moments don’t knock on your door and tell you to capture them; your sharpness and alertness help you capture those memorable moments. Furthermore, a photojournalist should never inform others about his or her whereabouts; in photojournalism, the left hand should never know what the right hand is doing. This quality keeps you ahead of the other photographers.

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How has the field of photojournalism changed, according to you?

In earlier days, photojournalists used to get two to three rolls for the camera. The photos had to be taken meticulously because of the limited rolls. Next to that was the process of developing the film rolls to get the real picture. Nowadays, everything has become easier and convenient. Digital Cameras have replaced the old cameras; now, photojournalists click in burst mode and capture a series of photos. After that, the photographers choose the best out of them. So today, the work is quickly done in a smooth manner without any problems. Another change is, if there is a mega event happening, every photojournalist will only cover it, leaving the other events out of scope.


What is the most beautiful thing about Mumbai?

I have clicked so many photos and have discovered more than 100 locations to capture and carve out the spirit of Mumbai in different images. So, in my opinion, everything in Mumbai is beautiful.


How has the city of Mumbai transformed in the past decades in terms of infrastructure?

Infrastructure has gone through a major upgradation. Before these times, I wanted to show the bird’s-eye view of Mumbai to the audience. I started to take photos in 2014, from the top-most places and buildings. The photos were easier to take due to the absence of high-rise buildings and bridges. When the pictures were showcased in my exhibition, people thought that I had taken my pictures from a drone; I had to put up a board clarifying that none of the photos were taken from drones. The change in infrastructure does hinder photography, for instance, previously, Haji Ali was visible from Worli, but now, due to the coastal road, it is difficult to see it.


How did you feel after Raj Thackeray penned a letter for you?

It was very generous of him to send me a letter. It was an amusing feeling to receive that letter. I had invited him to inaugurate my exhibition. But, as he had an important foreign trip, he could not come. His secretary called me and was sorry as Raj sir wasn’t able to come. It was a detailed letter, and Raj sir wrote it as if he had seen the whole exhibition.

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