As India works to recover from the impacts of the pandemic, a new survey paints an optimistic picture of the contribution that can be made by the country’s younger consumers. Millennials and Gen Z represent a significant portion of the population and are showing strong purchasing power despite economic headwinds. Their growing spending is central to renewing consumer demand and driving broader economic growth in the months ahead.
The survey of over 2500 Gen Z and Millennial consumers across several cities found they remain largely optimistic about their personal finances and willing to spend on both essential and discretionary items. Members of these generations feel secure in their employment or access to funds even as prices rise. Their spending is shifting increasingly online as digital commerce becomes more ingrained in daily life.
Sectors like entertainment, travel and dining out are primed to benefit as younger consumers direct spending towards experiences over possessions. Entertainment is a priority category and travel is regaining lost ground as restrictions ease. E-commerce will keep expanding its reach with a wide selection appealing to changing tastes. Education and skills development also attract spending with long-term career planning in mind.
While inflation remains a top concern, flexible work arrangements help sustain job security perceptions for now. Younger Indians managed debt well during difficult times and most expect their financial standing to improve over the next year. Their role as early tech adopters ensures new growth avenues will keep emerging. As stable income and savings habits take hold, their economic impact could well surpass previous generations.
With ambitious targets set for achieving higher growth, India’s demographic dividend is looking ever more promising. Younger consumers display the willingness and means to lift consumption from its pandemic slump. Their activities will be closely watched for the recovery signals they send throughout 2023 and beyond.
