India's Spending Surge: How GenAI Reshapes Shopping Amid Economic Optimism

Indian consumers also stand out for their use of GenAI in shopping. About 64 per cent rely on these tools to guide brand and product choices, marginally higher than the 63 per cent who use them for work-related purposes. This signals a fundamental shift in how consumers research, evaluate, and purchase products.

The study highlights India as one of the most optimistic consumer markets worldwide, supported by strong spending intentions and early leadership in GenAI usage. As households head into 2026, confidence remains resilient despite slowing momentum in several global economies. More than 60 per cent of Indian consumers expect favourable economic conditions to continue, while only around one-third express concern about unemployment or a broader economic downturn.

Parul Bajaj, India Leader - Marketing, Sales and Pricing Practice at BCG, says this reflects a pivotal change in consumer behaviour. "India's consumers are rapidly embracing a fully digital, AI-enabled path to purchase, with GenAI now firmly embedded in everyday decision-making. With 62 per cent of consumers having already used GenAI tools, and more people applying them to shopping than even to work, India is emerging as one of the most advanced markets globally in how technology shapes consumption," she says.

The report adds that automobiles and mobile devices are expected to see the strongest growth in spending. While India continues to post higher discretionary spending than most markets, inflation remains a key driver. Nearly 69 per cent of consumers planning to spend more attribute this increase to rising prices of both essential and non-essential goods.

Kanika Sanghi, Partner and Director at BCG, notes that this confidence persists despite global uncertainty. "Indian consumers continue to show confidence, with 60 per cent expecting to increase household spending over the next six months. For businesses, the priority is to decode the drivers and shape of this shift," she says.

The report also points to a gap between intent and action on sustainability. While many consumers say they consider climate impact when making purchases, only a small proportion are willing to pay a premium. Although 57 per cent claim they are open to trying new brands, 84 per cent ultimately choose brands they already know, often favouring affordability and familiarity.

Overall, the findings suggest that India remains relatively insulated from global geopolitical tensions. Only 17 per cent of respondents believe international events could slow India's growth, a significantly lower share than in many Western economies.

- ANI