India Emerges as One of the World’s Most Optimistic Consumer Markets, With Net Optimism at +27%
New Delhi: India’s consumers are entering 2026 with remarkable confidence, strong spending intent and an enthusiastic embrace of new technologies. The latest Global Consumer Radar Report from BCG highlights India as one of the world’s most optimistic consumer markets, with households expecting to increase spending across categories, led by automobiles and mobile devices. While India sees a relatively higher share of discretionary-led spend increases compared with other markets, the primary driver of higher outlays remains inflation, 69% of consumers who expect to spend more say this rise is largely due to increasing prices of both essentials and non-essentials.
With 62% consumers using GenAI tools in their daily lives, India stands out as one of the global front-runners in GenAI adoption. Indian users also lead in using these tools for shopping-related use. Beyond technology, other forces too shape consumers’ purchase decisions. Even as shoppers embrace new cutting-edge tools, they have to make trade-offs on aspects like sustainability – where strong interest is accompanied with a pronounced say–do gap –and malleable personal preferences, where many claim openness to new brands, but continue to buy familiar ones.
Commenting on the India Findings of the report, Parul Bajaj, India Leader – Marketing, Sales and Pricing Practice, BCG said, “India’s consumers are rapidly embracing a fully digital, AI-enabled path to purchase, with GenAI now firmly embedded in everyday decision-making. With 62% of consumers having already used GenAI tools, and more people applying them to shopping than even to work, India is emerging as one of the most advanced markets globally in how technology shapes consumption. For brands, this signals a decisive shift: think beyond SEO and optimize in a world of AEO (answer engine optimization) with structured, trustworthy and comparison-ready content.”
Commenting on the India Findings of the report, Kanika Sanghi, Partner and Director, BCG said, “Even as many global markets are seeing softening, Indian consumers continue to show confidence with 60% expecting to increase household spending over the next six months – there are differences across categories albeit. For businesses, the priority is to decode the drivers and shape of this shift – understanding personal preferences, category dynamics, shifting motivations and channel those insights into bold portfolio bets that match India’s strong consumption cycle”
India Findings include:
India is unfazed by ongoing geopolitical conflicts: Only net 17% consumers believe that recent global conflicts or political events will slow down India’s growth, 2nd lowest after China. In contrast, this number is 60%+ for consumers in UK, France and Germany.
India continues to be one of the most optimistic consumer markets: 61% of consumers expect continuous good times versus 34% who expect widespread unemployment or depression, implying a net optimism of +27%. This is second only to China and sits far above the global average of around minus 12%.
Indian household spending expected to rise strongly and across categories: 60% of consumers expect their total spends to be higher in the next six months, up from 50% in Sept’24. All tracked categories show net expected increases, led by automobiles (+70%), mobile plans and devices (+63% each).
Inflation is the primary driver of increased spending intent across countries, including India. Yet India stands out because for about 1/3rd of consumers expecting to spend more, the increase is driven primarily by discretionary purchases – highest globally.
India at the forefront for GenAI adoption: Highest usage of GenAI for shopping related use-cases with 62% of consumers having used GenAI tools as of Nov’25 – up sharply from 48% in Feb’25. Indian users also lead globally in applying GenAI for shopping related use, with 64% using Gen AI to guide their brand and product decisions – marginally higher than the use of GenAI for work (63%)
Strongest focus on sustainability, but with a large say–do gap: 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 – highest globally. At the same time, only 9-15% are willing to pay more for sustainable options, revealing a sizeable say–do gap.
Indian consumers say they are open to new brands but still buy familiar ones: 57% consumers say they have a flexible mindset and are open to try new brands, 84% ultimately default to their usual brand or another brand that they have previously used. This inertia suggests considerable headroom for brands to shape consumer choices and shift purchase patterns
India’s consumption momentum accelerates, forging the base of a decade-long growth era even as global peers falter. Adding a third trillion-dollar economy in three years, upbeat households signal sustained demand through resilient spending shifts across key categories. Brands that decode these dynamics will lead the next phase of market expansion.
