60% of Indians plan to spend more despite global turmoil: BCG

Indian consumers remain largely unfazed by ongoing geopolitical conflicts and political uncertainty, making India the world’s most optimistic consumer market, according to BCG’s Global Consumer Radar report.

Only 17% of Indian consumers believe recent global conflicts or political developments will slow the country’s economic growth—the second-lowest level of pessimism globally after China. In contrast, more than 60% of consumers in the UK, France and Germany expect geopolitical tensions to weigh on their economies.

The survey shows a sharp divergence in consumer sentiment within India. While 61% of Indian consumers expect “continued good times,” about 34% anticipate widespread unemployment or an economic downturn. Despite this split, spending intentions remain strong.

Around 60% of Indian consumers expect their total household spending to increase over the next six months, up from 50% in September 2024, with growth anticipated across most consumption categories.

“For businesses, the priority is to decode the drivers and shape of this shift—understanding personal preferences, category dynamics and evolving motivations—and channel those insights into bold portfolio bets that align with India’s strong consumption cycle,” said Kanika Sanghi, Partner and Director at BCG.

The report also highlights India’s rapid adoption of digital and AI-led consumption. About 62% of Indian consumers have already used generative AI tools, with more people applying them to shopping decisions than even to work-related tasks.

“India’s consumers are rapidly embracing a fully digital, AI-enabled path to purchase,” said Parul Bajaj, India Leader for Marketing, Sales and Pricing at BCG. “With GenAI now embedded in everyday decision-making, brands must think beyond SEO and optimize for a world of answer engine optimization (AEO), built on structured, trustworthy and comparison-ready content.”