The long-term deepening of India’s consumption 

India’s consumption story is evolving in ways that are not always visible in headline growth data.

Household net assets have remained above 65% of GDP post-pandemic, higher than pre-COVID levels. Digital retail spends have risen nearly 9x since 2020. Combined demat custody (NSDL + CDSL) value increased from INR 205 trillion in 2018 to INR 612 trillion in 2025, reflecting expanding financial participation and wealth creation.

Over the past decade, household balance sheets have strengthened, higher-income cohorts have expanded, and incremental demand has steadily shifted toward mobility, healthcare, travel, and premium categories, even as overall spending shares have remained broadly stable. Evidence of trading up is visible in the decline of the two-wheeler to four-wheeler ratio from 6–7 a decade ago to ~4.5–5 today.

Growth is also becoming increasingly multi-speed. Rural FMCG volumes grew 8.4% in Q2FY2026 versus 3.7% in urban markets, while smaller cities and emerging cohorts are contributing a rising share of vehicle registrations and mutual fund flows.

This report examines these structural shifts across incomes, assets, credit, regional divergence, and digital participation, with a focus on durability over a multi-year horizon. The evidence points to a compositional deepening of demand rather than a broad-based weakening of India’s consumption base.