What The Consumer Team is Watching In The Week Ahead
In the week ahead (August 25-29 2025), our Country Risk team will be monitoring the release of GDP figures in India. High frequency data are a mixed bag. On the one hand, indicators such as motor vehicle sales performed better in Q2 2025, growing by a noticeably quicker 5.2%, compared with 0.7% in Q1 2025. On the other hand, industrial production growth halved to 2.0% in Q2 2025 from Q1 2025, marking the slowest quarterly rate of expansion since Q3 2022. Overall, our GDP tracker points to a further growth slowdown and we believe real GDP rose by around 5.3% y-o-y, while real GVA increased by around 5%.
Asia Consumer Watch: Strong Spending Outlook in India to Persist
India’s consumer market is poised for continued robust growth, driven by rising incomes and a burgeoning middle class. Economic reforms and digital advancements are empowering consumers, fostering an environment ripe for sustained spending. As disposable incomes increase, Indian households are prioritizing expenditures on diverse sectors such as technology, fashion, and healthcare.
The digital revolution plays a pivotal role in shaping consumer behavior. E-commerce platforms are witnessing unprecedented growth, offering consumers vast choices and seamless shopping experiences. This digital shift is further fueled by increased smartphone penetration and improved internet access, making online shopping more accessible. Consequently, the retail landscape is adapting, with traditional stores integrating digital channels to enhance consumer engagement.
Amidst these trends, the Indian government is playing an active role by promoting initiatives that boost economic confidence and reduce financial barriers. As economic optimism rises, businesses are investing in market research and innovation, tailoring products to meet evolving demands. This synergy between consumer enthusiasm and strategic initiatives suggests a promising outlook for India’s spending landscape.
