This surge is fueled by a rapidly growing affluent population.

Affluence on the Rise

Currently, 4% of India (around 40 million) are considered affluent. By 2028, this group is expected to double, reaching a staggering 88 million.

Spending Power

Overall consumer spending will likely grow steadily at around 5%, impacted by factors like slower wages and rising interest rates. However, affluent consumers are expected to maintain strong spending habits.

Looking Ahead

Falling inflation is expected to create a more favorable environment for domestic consumption, strengthening India's economy. However, long-term success depends on creating high-quality jobs, according to UBS. The report also emphasizes the widening income gap, increased access to credit, and evolving consumer preferences as key factors shaping India's retail future.