Private Consumption in India
The Indian economy recorded an average growth rate of 6.2% in private consumption in the decade to 2022. In 2022, private consumption growth was 7.5%. For more private consumption information, visit our dedicated page.
India Private consumption Chart
Note: This chart displays Private Consumption (annual variation in %) for India from 2013 to 2023.
Source: Macrobond.
India Private consumption Data
2020 | 2021 | 2022 | 2023 | 2024 | |
---|---|---|---|---|---|
Private Consumption (ann. var. %) | -5.3 | 11.7 | 7.5 | 5.6 | - |
Economic growth accelerates in October–December
GDP reading: Annual GDP growth rose to 6.2% in October–December (Q3 FY 2024) from 5.6% in July–September. The reading matched market expectations, and helps cement India’s status as the world’s fastest-growing large economy. However, it still marked one of the weakest readings in the post-pandemic era, suggesting the economy is on a downtrend, and was far below the 8% rate that economists say is needed to meet the Prime Minister’s goal of making India a developed country by 2047.
Drivers: Household spending increased 6.9% in October–December, which was above July–September's 5.9% expansion, fueled by the boost to rural consumption from favorable rains and a strong harvest. Moreover, public spending improved to an 8.3% increase (July–September: +3.8% yoy), aided by a post-election bout of expenditure. Furthermore, the contribution of net trade to GDP growth roughly doubled to 2.5 percentage points from 1.2 percentage points; exports of goods and services growth hit an over one-year high of 10.4%, picking up from July–September's 2.5%, driven by IT and financial services. This outweighed a softer drop in imports of goods and services of 1.1% (July–September: -2.5% yoy). Less positively, fixed investment growth fell to 5.7%, marking the weakest reading since January–March 2023 (July–September: +5.8% yoy), potentially weighed on by past interest rate hikes by the Central Bank.
GDP outlook: GDP growth is projected to hit a one-year high in January–March, with strong harvests boosting rural private consumption and recent tax cuts stimulating domestic demand. However, the pace of expansion is seen remaining below the 10-year pre-pandemic average of 6.9%, and will be due in part to a one-off boost from the government squeezing out infrastructure projects to meet capital expenditure targets. In addition, U.S. tariffs pose a downside risk to the outlook.
Panelist insight: Nomura’s Aurodeep Nandi and Sonal Varma said: “In our view, the cyclical growth slowdown still has legs. Urban consumption is likely to remain weak as incomes struggle amid balance sheet stress. Companies are struggling with tepid consumer demand, and private capex faces headwinds from an uncertain global environment, softer domestic demand, higher interest costs and an influx of Chinese imports. As the recent budget confirmed, public capex has peaked, and while not insignificant, the outlay has been kept unchanged at 3.1% of GDP. Meanwhile, the income tax concessions for the middle class are well-intentioned, but may struggle to move the needle much on growth.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Indian private consumption projections for the next ten years from a panel of 14 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable private consumption forecast available for Indian private consumption.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Indian private consumption projections.
Want to get access to the full dataset of Indian private consumption forecasts? Send an email to info@focus-economics.com.
Latest Global GDP News
-
Chile: GDP growth improves in Q1 GDP reading: GDP growth gathered steam to 0.7% on a seasonally adjusted quarter on quarter basis in the first quarter,... -
Israel: Economic growth gains traction in Q1 GDP reading: GDP growth gathered pace to 3.4% in seasonally adjusted annualized rate terms (SAAR) in the first quarter from... -
United Kingdom: GDP growth records best result since Q1 2024 in the first quarter Underlying picture less positive than headline reading: GDP growth improved to 0.7% on a seasonally adjusted quarter on quarter basis... -
Bulgaria: GDP growth edges down in the first quarter but remains robust by regional standards GDP reading: According to a preliminary reading, GDP growth waned to 3.1% year on year in the first quarter from... -
Colombia: Economy expands at the fastest pace in over two years in Q1 Faster-than-expected expansion remains below trend: The economy started the year with a spring in its step, with GDP growth accelerating... -
Kazakhstan: Economy posts best first-quarter reading in over a decade in Q1 GDP growth flies past trend: The economy rallied at the outset of 2025, expanding 5.6% in the first quarter and... -
Cyprus: GDP growth accelerates in Q1 GDP growth strengthens: According to a preliminary estimate, GDP growth gathered traction to 3.0% year on year in the first...