New Delhi [India], March 21 (ANI): India is set to become the consumption capital of the world, outpacing major economies says a report by Angel One, Iconic asset.

In India Consumption accounts for 56 per cent of the GDP and is the fastest-growing segment of its economy. The report says that driven by the fastest-growing consumer base in the world India's consumption is projected to double by 2034.

Household growth in India because of nuclear family trends is outpacing population growth and this is emerging as the key driver of rising consumption. will drive consumption. India is also set to lead in global workforce growth.

Additionally, the report projects that India's savings over the next 25 years will be 10 times of the total savings of the past 25 years. Between the financial year 1997 and 2023 the total savings of India was USD 12 trillion, the report says it will make a 10-fold jump to USD 103 trillion by 2047. This will unlock massive potential for incremental consumption.

Recent tax cuts in the union budget will unlock Rs 1 lakh crore and this will drive an incremental consumption of Rs 3.3 lakh crore, which has the potential to boost the country's GDP by 1 per cent.

The report says during periods of economic and income expansion, both the US and China witnessed discretionary consumption outpacing non-discretionary spending -- and India is poised to follow a similar trajectory.

'Consumption spend in US increased 10X during phase of strong rise in per capita income. India can witness similar growth in consumption as per capita income rises,' the report said.

Consumer electronics, Apparel, accessories (including jewellery) and experience economy to emerge as the fastest categories in discretionary consumption.

With 92 per cent of retail trade still flowing through Kirana stores, there is a massive opportunity ahead for modern retail to scale and capture market share.

India has more Gen Zers than the entire US population. By 2035, every second rupee spent will come from a Gen Zer. This adds to the consumption growth story of India. (ANI)