India remains one of the most positive consumer markets in the world, even with economic  challenges and global tensions, as per the latest Global Consumer Radar report by Boston  Consulting Group (BCG). The report shows that steady GDP growth and strong domestic  demand have kept consumer confidence high over the past year. 

The findings reveal that Indian consumers are mostly optimistic about the country’s economic  future. About 61% of them believe that good times are ahead, making India one of the most  hopeful markets among both developed and developing countries in the study. 

Resilience amid global challenges 

A key point from the BCG report is that global geopolitical issues have had little effect on  Indian consumer confidence. Only 17% of Indian consumers think that recent global conflicts  could slow down the country’s growth, which is the second lowest among the countries  surveyed, after China. 

In contrast, many consumers in developed countries show much more pessimism. Over 60%  of people in the UK, France, and Germany expect global events to harm economic growth. 

The report looked at consumer sentiment in nine major economies, including France,  Germany, the UK, the US, Japan, Mexico, Brazil, India, and China. 

With 61% of Indian consumers expecting positive economic conditions and only 34% fearing  widespread unemployment or recession, India has a net optimism of 27%. This is only behind  China and is much higher than the global average of about minus 12%. 

Positive outlook for household spending 

Reflecting this optimism, Indian households are likely to increase their spending in most  areas in the coming months. Nearly 60% of consumers expect their overall spending to rise in  the next six months, up from 50% in September 2024. 

BCG noted that all categories tracked showed a net increase in spending intent. Essential  items like automobiles, mobile devices, mobile plans, and housing rentals are expected to see  higher demand. The auto segment is projected to grow the most, followed by mobile devices  and plans. 

Interestingly, for about one-third of consumers planning to spend more, the increase is mainly  due to discretionary purchases. This is the highest share globally, showing growing consumer  confidence and a willingness to spend beyond necessities. 

However, spending intent for frequent consumption items like packaged snacks and soft  drinks is lower, indicating a more selective and value-conscious approach. 

Demographic and income trends 

The report also points out differences among demographic groups. Millennials and Gen X  consumers in India feel more financially secure than Gen Z. With age and savings on their  side, these groups seem better equipped to handle economic changes. 

While higher and middle-income groups show strong optimism, the report notes that this  positive feeling has not fully reached lower-income groups, who still feel less secure  financially. 

India leads in GenAI usage 

BCG’s Global Consumer Radar also highlights India’s leading role in Generative AI  adoption. By November 2025, 62% of Indian consumers had used GenAI tools, up from 48%  in February 2025. 

India also excels globally in using GenAI for shopping, with 64% of consumers applying the  technology for purchase decisions, slightly more than for work-related uses. 

Sustainability and brand behaviour 

Indian consumers show a strong interest in sustainability, but there is a gap between their  intentions and actions. Nearly 80% consider climate change and sustainability in their daily 

purchases, the highest among all surveyed markets. However, only 9–15% are willing to pay  extra for sustainable products. 

Regarding brand preferences, the report notes that while consumers are open to trying new  brands, most still choose familiar ones. This behaviour offers brands a significant opportunity  to influence consumer choices and change buying habits in the Indian market.