salads and sunday brunches mascara and multiplexes organic and gourmet meals a dubai shopping festival and kilimanjaro treksthe appetite of indian consumers seems insatiable looking ahead to 2047 the 100th anniversary of the countrys independence the main question is whats driving this boom and more importantly how will it evolveconsumption is highly correlated with gdp per capita indias gdp constant prices per capita in ppp terms grew 45 percent yearonyear over the past 30 years which has led to most consumer categories becoming 35 times larger than they were in 1991 and as the per capita income crosses the 2000 threshold consumption is expected to trend upward in line with other developed countries signs of this are already visible the gross domestic savings rate dropped from 34 percent in 2007 to 29 percent in 2021and a savings loss is a consumption gain advt this growth is uneven as india is actually many indias the gap between the income segments is wide their growth unequal and their consumption patterns and price elasticity very different this diversity will only increase as the population climbs up the income ladderthe top two segments will contribute to more than 90 percent of consumption by 2047 the top 4 percent of indian consumers have seven times as much income as the other 96 percent mostly living in urban areas their spending habits are closer to that of a strong economy such as chinas their spending on convenience and luxury items and their brand affinity are expected to continue to grow according to the price report the share of indias population in the rich segment with household incomes of more than inr 30 lakh will grow from 4 percent today to 26 percent in 2047a group of consumers that will be 78 times larger than it is today these consumers will drive the growth of the superpremium segment and bridge to the luxury segments the top end of this segmentthe high networth individualsis about 800000 people today and its growing rapidly at 12 percent yearonyear today 25 percent of their luxury spending happens outside the country with developments in infrastructure and regulations india can bring that spending homethe next 30 percent of consumers have spending habits that are in line with asian economies such as the philippines and vietnam earning between 5 and 30 lakhs per household these affluent consumers have climbed up the ladder from the middle class they are consuming more offeringssomething their parents could never doand its driving premiumization for all consumer brands aspirations experimentation convenience and some bit of awareness of issues such as sustainability fitness and gender will drive their behaviors making this segment the best target for newage products and business models this segment of consumers will become 23 times larger by 2047 with its share of the population expanding from 30 percent to more than 60 percent as the bulk of the countrys lowerincome households rise up we estimate that consumption in the top two segments will swell from 65