India is on track to become the world&rsquo;s third-largest consumer market by 2026 and the third-largest economy by 2028, trailing only the United States and China, according to a recent UBS report.
The report highlights that India&rsquo;s household consumption nearly doubled over the past decade, reaching $2.4 trillion in 2024, growing at a compound annual rate of 7.9 per cent, outpacing China, the US, and Germany. This rapid expansion reflects India&rsquo;s robust domestic demand and rising middle-class spending.
UBS projects that India&rsquo;s real GDP growth will stabilise at 6.4 per cent in FY27 and 6.5 per cent in FY28, making it the fastest-growing economy in the Asia-Pacific region. The Philippines and Indonesia are expected to follow with 6.1 per cent and 5.1 per cent growth, respectively.
However, the report warns of downside risks stemming from possible changes in US trade policy. A sustained 50 per cent trade tariff under a potential Donald Trump administration could reduce India&rsquo;s GDP growth by 50 basis points, while a 25 per cent tax on payments to foreign outsourcing services might trim another 90 basis points in FY27.
UBS also anticipates that the Reserve Bank of India (RBI) may introduce a further 25 basis point rate cut by March 2026 to sustain economic momentum.
[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed.]

UBS report says India set to rank third globally in consumer spending by 2026

India to Become 3rd Largest Consumer Market

UBS report says India set to rank third globally in consumer spending by 2026

November 11, 2025 | 19:18 IST