Consumer-led Economy

Context

According to a report titled ‘Click, Watch, Shop: The Consumer Opportunity in India’ by Bessemer Venture Partners, more than 60 per cent of India’s economy is consumer-led, and a large share of this value is expected to go to consumer startups.

What is a Consumer-Led Economy?

A consumer-led economy is one where consumer demand drives the bulk of economic growth, especially through spending on goods, services, and digital platforms, rather than production or exports.
In India, this means economic momentum is now coming primarily from what people buy online and offline, what content they watch, and how they transact.

Key Factors Driving the Trend:

Digital Infrastructure & Smartphones: Over 800 million Indians now use the internet, thanks to cheap mobile data (Rs 12/GB or USD 0.15/GB). India has seen a 4x rise in e-commerce: from USD 30B in 2020 to USD 123B in 2024, projected to hit USD 300B by 2030.
Rise of UPI and Digital Payments: UPI transactions have exploded: from 93,000 in 2016 to 3 billion in March 2025.
- New platforms like ONDC (Open Network for Digital Commerce) and OCEN (Open Credit Enablement Network) are expected to democratize e-commerce and credit access, especially for small sellers.
Changing Demographics & Disposable Income: India’s median age is 8 years, and per capita discretionary income has doubled to USD 2,500 in 2024.
Quick Commerce (Q-Commerce): Services like Blinkit, Zepto, Swiggy Instamart deliver groceries in 10–30 minutes.
Rise of D2C (Direct-to-Consumer) Brands: Brands like Boldfit, Mokobara, Blissclub, Minimalist are targeting niche consumer needs directly through digital platforms.
- Consumers are preferring mass premium, affordable, aspirational Indian brands across fitness, fashion, skincare, travel, etc.
Content Consumption Boom: Online video and entertainment are also shaping the consumer economy.