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Consumption
Private consumption is the money households spend on everything from food and rent to phones and holidays. In India it accounts for well over half of GDP, larger than investment, government spending or exports.
Why It Matters
When Indians spend confidently, the whole economy grows; when they cut back, almost every business feels it.
In India
The September 2025 GST cuts and the 2025 income tax relief were both designed to leave more money in households’ pockets and boost consumption.
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