62% of Indian consumers use GenAI daily, with 64% using it for brand and product decisions

New Delhi: Indian consumers are entering 2026 with notable confidence, strong spending intent, and a willingness to embrace new technologies, according to the latest Global Consumer Radar Report from BCG. 

India also stands out globally in the adoption of generative AI (GenAI). With 62% of consumers using these tools in daily life, 64% report using GenAI to guide brand and product decisions, slightly more than the 63% using them for work purposes.

The report identifies India as one of the world’s most optimistic consumer markets, with net optimism at +27%, second only to China. Over 60% of Indian consumers anticipate continued economic optimism, while roughly one-third express concern about rising unemployment or an economic slowdown.

Household spending is expected to increase, particularly in categories such as automobiles and mobile devices, reflecting both discretionary purchases and inflation-driven outlays. About 69% of consumers who expect to spend more attribute it largely to rising prices across essentials and non-essentials.

Parul Bajaj, India Leader, Marketing, Sales and Pricing Practice, BCG, commented, “India’s consumers are rapidly embracing a fully digital, AI-enabled path to purchase, with GenAI now firmly embedded in everyday decision-making. With 62% of consumers having already used GenAI tools, and more people applying them to shopping than even to work, India is emerging as one of the most advanced markets globally in how technology shapes consumption. For brands, this signals a decisive shift: think beyond SEO and optimize in a world of AEO (answer engine optimization) with structured, trustworthy and comparison-ready content.”

Kanika Sanghi, Partner and Director, BCG, added, “Even as many global markets are seeing softening, Indian consumers continue to show confidence with 60% expecting to increase household spending over the next six months – there are differences across categories albeit. For businesses, the priority is to decode the drivers and shape of this shift – understanding personal preferences, category dynamics, shifting motivations and channel those insights into bold portfolio bets that match India’s strong consumption cycle.”

Despite global uncertainties, India remains relatively insulated, with only 17% of consumers believing that recent geopolitical conflicts or political events will slow down economic growth, second lowest globally after China. In comparison, over 60% of consumers in markets such as the UK, France, and Germany express such concerns.

Indian consumers also show openness to sustainability and new brands, though there is a notable say–do gap. While eight in ten consumers consider climate change or sustainability when making purchases, the highest globally, only 9–15% are willing to pay more for sustainable options. Similarly, although 57% express flexibility to try new brands, 84% ultimately choose familiar options, indicating room for brands to influence purchase behaviour.