India’s share in global consumption is projected to be 16% by 2050.
According to the McKinsey Global Institute titled “Dependency and Depopulation: Confronting the Consequences of New Demographic Reality,” it is estimated that India’s share in global consumption will be 16% by 2050, down from 9% in 2023.
Only North America, with an estimated 17% share, will overtake India’s global consumption share by 2050.
These estimates are based on purchasing power parity, which adjusts for price differences between different countries.
The increase in India’s share of global consumption is mainly due to its young and growing population as well as rising incomes.
Only 26% of the global population will reside in first-wave areas (areas with historically low fertility rates) by 2050, a sharp decline from 42% in 1997.
By 2050, India’s labour force will account for two-thirds of global working hours.
India’s share of the global population, which was 23% in 2023, will decline to 17% by 2050.
