Mains Practice Questions

Introduction

The advent of consumerism in India, accelerated by the economic liberalization of 1991, has fundamentally altered the socio-cultural fabric of the nation.

• This shift represents a complex interplay between global market forces, changing economic policies, and evolving cultural norms.

Body

Consumerism Reshaping Consumption Patterns:

• From Frugality to Indulgence: Traditional values of saving and thrift are being replaced by a culture of spending and immediate gratification.
  • India's household savings rate has declined from 22.7% of GDP in 2020-21 to 18.4% in 2022-23, indicating a shift towards consumption.
• Rise of Aspirational Consumption: Consumption is no longer just about fulfilling needs but about projecting social status and identity.
  • The luxury goods market in India is forecasted to reach a revenue of USD 7.86 billion in 2024, outpacing many developed markets.
• Democratization of Luxury: Previously exclusive products are now accessible to the middle class through EMIs and affordable luxury segments.
  • This has led to a blurring of class distinctions based on consumption patterns.
• Digital Consumption Revolution: E-commerce has transformed buying behaviors, especially in Tier 2 and Tier 3 cities.
  • India's e-commerce market is expected to reach USD 200 billion by 2026, up from USD 38.5 billion in 2017.
• Shift in Food Consumption: Move from home-cooked meals to packaged and restaurant foods.
  • This has contributed to a rise in lifestyle diseases, with The prevalence of diabetes in India has risen from 7.1% in 2009 to 8.9% in 2019.

Transformation of Lifestyles:

• Changing Family Structures: Nuclear families are becoming the norm, altering household consumption dynamics.
  • This has led to a boom in household appliances and convenience products markets.
• Time as a Commodity: Increasing value placed on leisure time has given rise to a service economy. This has led to the services sector contributing over 50% to India's GDP.
• Technology Integration in Daily Life: Smartphones and internet penetration have changed how Indians communicate, work, and entertain themselves.
  • In 2023, internet penetration in India grew 8% year-on-year.
• Health and Wellness Focus: Growing awareness about health has created new markets for organic foods, fitness equipment, and wellness services.
  • According to IMARC report Indian India organic food market is expected to exhibit a CAGR of 25.25% during 2022-2027.

Shift in Social Aspirations:

• Career Choices and Entrepreneurship: Shift from job security to high-risk, high-reward career options.
  • India has emerged as the world's third largest startup ecosystem with over 1.25 lakh startups and 110 unicorns, reflecting changing aspirations.
• Redefinition of Success: Success increasingly measured in material terms rather than spiritual or intellectual achievements.
  • This has led to increased stress and mental health issues, with over 60 to 70 million people with mental disorders in India.
• Global Citizenship Aspirations: Desire to be seen as global citizens through consumption of international brands and experiences.
  • This has led to a hybridization of Indian culture, blending global trends with local traditions.

Conclusion

Consumerism has undeniably transformed Indian society and culture. While it has contributed to economic growth and improved living standards for some, it has also brought about challenges. Fostering a culture of responsible consumption and sustainable lifestyles is crucial for the long-term well-being of individuals and society.