New Delhi, Sep 29 (SocialNews.XYZ) India’s consumption story remains resilient despite market volatility and global macroeconomic uncertainties with premiumisation, evolving consumer preferences and strong domestic demand expected to support growth in the second half of FY27, according to a report released on Tuesday.
A report by smallcase noted that real private final consumption expenditure grew 7.1 per cent in Q1FY27 which marginally lower than 7.5 per cent in the previous quarter, while spending patterns increasingly shifted towards premium, branded and experience-led categories.
The outlook comes amid robust economic growth with India’s GDP expanding 7.8 per centin Q1FY27, surpassing the Reserve Bank of India’s 7 per cent forecast.
Although equity markets have remained under pressure due to foreign portfolio investor selling, strong domestic institutional inflows have provided a significant cushion, it said.
“India’s consumption story remains healthy, but the mix is increasingly shifting towards premium, branded and experience-led spending,” said Aditya Agarwala, smallcase manager.
Premiumisation has emerged as a key structural trend across sectors. The share of SUVs and utility vehicles in passenger vehicle sales has risen to 65 per cent from 23 per cent in 2019, while smartphones priced above Rs 30,000 now account for more than one-fifth of volumes and over half of industry value.
The report also highlighted that domestic air travel has crossed 16 crore passengers, while branded apparel continues to expand across smaller cities.
It also showed growing demand for health, wellness and digital consumption.
India’s nutraceutical market is projected to grow at an annual rate of about 10.5 per cent through 2030, while online beauty and fashion categories continue to record strong growth.
Moreover, alternative-fuel vehicles accounted for 42 per cent of passenger vehicle retail sales in August, while electric two-wheelers exceeded a 10 per cent market share.
Registrations of electric two-wheelers rose 65 per cent year-on-year during the month.
Looking ahead, the report has expected that the festive season to provide a near-term boost to spending, particularly in automobiles, organised retail, hospitality and financial services.
Source: IANS
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