India: Optimistic Consumer Market - BCG Report

New Delhi, Dec 15 (PTI) Consumer sentiment in India has shown steady momentum over the year aided by robust GDP growth and the country continues to be one of the most optimistic markets with 61 per cent of consumers expecting continuous good times, according to global consulting firm BCG.

Indian consumers are also unfazed by ongoing geopolitical conflicts as only 17 per cent net consumers believe that recent global conflicts or political events will slow down the country's growth, 2nd lowest after China. In contrast, this number is over 60 per cent for consumers in the UK, France and Germany, BCG said in its latest 'Global Consumer Radar' report.

The BCG report covered developed countries France, Germany, UK, US, Japan and developing nations Mexico, Brazil, India and China.

As per the report, 61 per cent of Indian consumers expect continuous good times versus 34 per cent who expect widespread unemployment or depression, implying a net optimism of 27 per cent.

This is second only to China and far above the global average of around -12 per cent (minus 12 per cent), it added.

Reflecting the positive consumer sentiments, household spending in the country is expected to rise strongly and across categories with 60 per cent of consumers expecting their total spends to be higher in the next six months, up from 50 per cent in September 2024.

The BCG report noted that all the tracked categories showed net expected increases, led by autos (+70 per cent), mobile plans and devices (+63 per cent each).

Notably, for one-third of the consumers who expect to spend more, the increase is driven primarily by discretionary purchases - highest share globally, it added.

Stating that very clear category-specific behaviours are emerging, the report said long-cycle and essential categories such as auto, mobile devices, mobile plan, and house/apartment rental see higher intention to spend in the near future.

On the other hand, for frequent consumption categories such as packaged snacks and soft-beverages, intention to spend is lower, it added.

The report also highlighted that Millennials and Gen X in India are feeling more secure than Gen Z about their personal financial situation.

With age and experience on their side, and accumulated assets and bank balance over the years, Millennials & Gen X seem to be in a safe place, it added.

There was strong and sustained positive sentiment for higher and middle-income cohorts but has not yet trickled down to the lower income cohort with its sentiment around financial security continuing to be at significantly lower levels, the report noted.

BCG's 'Global Consumer Radar' report also highlighted that India is at the forefront for GenAI adoption.

With the highest usage of GenAI for shopping related use-cases the country is one of the global front runners for Gen AI adoption, with 62 per cent of consumers having used GenAI tools as of November 2025 - up sharply from 48 per cent in February 2025, it added.

Indian users also lead globally in applying GenAI for shopping related use, with 64 per cent doing so- marginally higher than the use of GenAI for work (63 per cent).

When it comes to branded items, Indian consumers are open to new brands but still buy familiar ones, the report said.

Although 57 per cent consumers say they have a flexible mindset and are open to try new brands, 84 per cent ultimately default to their usual brand or another brand that they have previously used.

This discrepancy between stated openness and habitual behaviour suggests considerable headroom for brands to shape consumer choices and shift purchase patterns, the report added.

When it comes to sustainability, on an average, eight in ten Indian consumers say they think about climate change or sustainability when making day-to-day purchase decisions across categories-- the highest across all nine markets.

At the same time, only 9-15 per cent are willing to pay more for sustainable options, revealing a sizeable say-do gap, it noted.