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Nifty India Consumption Index: Capturing India's Consumption Surge
16 Aug
Summary
- India's consumption theme remains structurally strong
- Nifty India Consumption Index offers diversified exposure across sectors
- Index has delivered competitive returns over time
As of August 2025, India's consumption theme continues to exhibit structural strength, supported by favorable demographics, rising incomes, urbanization, and digitization. The Nifty India Consumption Index, which offers diversified exposure across various consumption-driven sectors, has consistently delivered competitive returns over the past decade.
Despite the market volatility experienced in the last 12-15 months due to macroeconomic factors and geopolitical tensions, India's private final consumption expenditure (PFCE) rose 7.2% in the fiscal year 2024-25. Consumption still accounts for a significant 61.4% of India's GDP.
Looking ahead, the recent income tax cuts and the upcoming pay commission recommendations for government employees are expected to provide a further boost to consumption. Additionally, the Reserve Bank of India's 100 basis points rate cut is set to drive credit offtake, further supporting the consumption story.
The Nifty India Consumption Index, with its 30 stocks across nine sectors, provides investors with a diversified way to participate in India's consumption growth. The index's systematic weighting and rebalancing methodology offer broad-based exposure to this theme, making it an effective option for investors seeking to capture the long-term potential of India's consumption-driven economy.
