Regional slowdown fails to choke India’s consumer spending

Gen Zs and millennials drove tech, leisure, personal care demand.

India remained the most resilient consumer market in the APAC region, as consumers ended 2025 with high spending intent across both essentials and discretionary categories which is a contrast to neighbouring countries sentiments.

In its Asia–Pacific consumer sentiment: Stability, selectivity, and spending shifts survey, McKinsey attributed this to India’s strong GDP growth and low unemployment.

Younger consumers, especially Gen Z and millennials, are driving demand in technology, leisure, and personal care, buoying up India’s consumption market.

Boomers are the only outlier, with discretionary spending intent dropping 25% since late 2024, highlighting a widening generational divide.