India's ConsumerTech Industry Poised to Hit USD 300 Billion by FY27 This expansion is fueled by product innovation and the growth of Digital Public Infrastructure (DPI) among others

India's digital economy is transforming how businesses and customers interact, driven by mobile-first businesses and seamless payment systems. ConsumerTech, which addresses key customer needs, has been a major driver of this transformation.

The sector is projected to reach USD 300 billion by FY27, growing at a 25 per cent compound annual growth rate (CAGR), according to the From Local to Global: The Evolution of Indian Brands' Distribution report.

This expansion is fueled by factors such as product innovation, the growth of Digital Public Infrastructure (DPI), strategic backward integration, omnichannel retail strategies, and increasing global market participation.

Rise of new consumer categories

As consumer preferences evolve, certain sectors within the ConsumerTech market are seeing faster growth than others. Categories such as health foods, athleisure, pet care, and consumer electronics are expanding rapidly, largely influenced by lifestyle changes, increasing disposable incomes, and shifting consumer priorities.

The health foods market, growing at a CAGR of 20 per cent, is being fueled by a heightened focus on wellness and nutrition. More consumers are seeking healthier alternatives, prompting brands to innovate with functional and organic ingredients. Similarly, the pet care industry, expanding at a CAGR of 17 per cent, is witnessing a surge in demand as pet ownership increases, leading to higher spending on pet nutrition, grooming, and wellness products.

The athleisure segment, which combines fitness and fashion, is another high-growth area. It is projected to reach USD 7 billion by 2028, reflecting a shift in consumer spending towards comfortable, performance-driven clothing that is suitable for both exercise and casual wear. These categories indicate a broader trend—Indian consumers are becoming more discerning and are willing to invest in products that align with their lifestyle choices.

India's global consumertech aspirations

Beyond domestic consumption, India is also strengthening its position in the global market. Industries such as lab-grown diamonds, millet-based foods, Ayurveda, and consumer electronics are seeing increasing export potential, supported by government initiatives such as "Make in India for the World".

Brands in these sectors are focusing on technology-led innovation, research and development (R&D), and strategic marketing to cater to international audiences.

As the industry matures, companies are rethinking their supply chain models, retail distribution strategies, and product offerings to stay competitive in both domestic and international markets.