India's future consumer boom hinges on rising wages, says Finance Minister

At the All India Management Association’s 53rd National Management Convention, Finance Minister Nirmala Sitharaman argued that India’s next consumption surge will be powered by rising wages and greater upward mobility, leading to higher discretionary outlays. Private consumption, which contributes over 50% of GDP, grew 7.7% in FY26 after GST rationalisation and a tax exemption for incomes up to ₹12 lakh. Sitharaman said an ageing population will shift spending toward healthcare, personal wellness, consumer durables and premium services.

She warned corporate India not to design strategies solely for the formal urban elite, as the consumption base includes families in agriculture, rural construction, transport and informal enterprises. Over-reliance on premiumisation, she cautioned, could weaken the durability of growth.