- KR Bharat
- 2025-12-16
60% of Indian Consumers Plan Higher Spending as GenAI Reshapes Shopping: BCG
New Delhi: Indian consumers are entering 2026 with strong confidence, with 60 per cent planning to increase spending over the next six months, according to a report released by the Boston Consulting Group (BCG) on Monday.
The report said higher spending intentions are being driven primarily by purchases of automobiles and mobile devices. Around 60 per cent of Indian households expect their overall expenditure to rise during the period.
India has emerged as a global leader in the adoption of generative artificial intelligence (GenAI) for shopping, with 62 per cent of consumers having used GenAI-powered tools and 64 per cent relying on them for brand and product decision-making, the report noted.
More than 60 per cent of Indian consumers expressed continued economic optimism, while only about one-third cited concerns over rising unemployment or a potential economic slowdown. Inflation remains a key factor influencing spending decisions, with 69 per cent pointing to rising prices of both essential and non-essential goods.
Parul Bajaj, India Leader for Marketing, Sales and Pricing Practice at BCG, said brands must move beyond traditional search engine optimisation and adopt “answer engine optimisation” by providing structured, trustworthy and comparison-ready content.
Highlighting India’s advanced adoption of GenAI, the consultancy said more consumers are using GenAI tools for shopping than even for work, positioning India among the most technologically advanced consumption markets globally.
Kanika Sanghi, Partner and Director at BCG, said that despite softening trends in several global markets, Indian consumers continue to show resilience, with a majority expecting higher household spending in the near term.
The report also found that only 17 per cent of Indian consumers believe global conflicts or political developments will negatively impact India’s economic growth, compared to over 60 per cent in countries such as the UK, France and Germany.
While nearly eight in 10 consumers consider sustainability or climate change when making purchases, only 9 to 15 per cent are willing to pay a premium for sustainable products. Additionally, despite openness to new brands, 84 per cent of consumers continue to prefer familiar brands, indicating strong brand loyalty.
