India's consumer spending is likely to expand nearly four times to $3.6 trillion by 2020, fuelled by economic growth and rising household incomes, a new study said Thursday.
Consumer expenditure in India is set to increase 3.6 times from $991 billion in 2010, at an annual rate of 14 percent, the Boston Consulting Group and Confederation of Indian Industry (CII) report said.
The BCG-CII report said India continues to "march along a robust growth path despite the current global economic environment."
"Consumer spending in India will continue to roar, but the firms that try to capture it have to work hard. India is a big, growing consumer market, but not an easy one," said Abheek Singhi a partner in BCG and an author of the report.
Food, housing, consumer durables, transport and communication are expected to remain the main categories of consumer spending, the report said.
By 2020, India's share of global consumption would have more than doubled to 5.8 percent, from the current 2.7 percent, the report said.
The government expects India's economy to expand by 6.9 percent in this financial year to March -- its slowest pace in three years -- down from 8.4 percent growth last year.
Growth in Asia's third-largest economy has slowed due to relentless interest rate hikes last year, a stumbling global economy and economic reform gridlock, analysts say.
Analysts are betting on retail and financial services sector growth, as India's 1.2 billion people move towards a more Western-style consumer economy.
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