A new year resolution India needs: Switching what we buy

India’s Consumption Power: The 2026 Reality

India is now the world’s most significant frontier for consumer growth. As of late 2025, private consumption accounted for 62.5% of India’s GDP, up from 60% just two years earlier. This means household spending is the undisputed primary engine of the national economy.

Despite this, India remains a massive importer of finished consumer goods. While "Make in India" has transformed electronics manufacturing, billions of dollars still flow out of the country annually for packaged foods, personal care, and lifestyle products. Many of these foreign-branded goods now have Indian alternatives that are not just competent, but often superior in formulation and design.

The Familiarity Bias vs. The D2C Revolution

Why do imported brands still dominate? Research shows that brand familiarity often outweighs origin awareness. However, 2025 marked a "maturity year" for India’s Direct-to-Consumer (D2C) ecosystem, now valued at over ₹8.5 trillion ($100 billion).

Indian brands in the Beauty and Personal Care (BPC) and wellness sectors have shifted the narrative. They are no longer "cheaper alternatives"; they are performance-led leaders. In many cases, global giants are now acquiring these Indian brands (such as HUL's acquisition of Minimalist) to gain access to their superior, India-specific innovations. The issue is no longer capability—it is our habit of reaching for the "global" label by default.

The Practicality of Switching

In 2025, "Imported Inflation" became a tangible reality, as the cost of imported goods surged amid global supply chain volatility and currency fluctuations.

• Price Advantage: Indian brands continue to offer a 35–45% price benefit by sourcing locally and eliminating "brand licensing" fees paid to foreign HQs.
• Savings: For a middle-income household, switching to local brands for daily essentials—from coffee and detergents to skincare, can save upwards of ₹25,000–₹40,000 annually.

The Employment Multiplier

India’s manufacturing backbone, the MSME sector, has seen a massive formalisation. By the end of 2025, over 6.8 crore MSMEs were registered, employing nearly 30 crore (300 million) people.

When we choose a local brand, the "multiplier effect" is profound:

Every ₹1 lakh spent on locally manufactured goods supports nearly 3x as many domestic jobs as the same amount spent on imports, as the entire supply chain, from raw materials to packaging, stays within the country.

Switching Is Not Sacrifice

The misconception that "Buying Indian" involves a compromise in quality is now obsolete. Modern Indian brands:

1. Comply with global standards: Most export to the US and EU.
2. Climate-specific innovation: They design products for Indian humidity, skin types, and electrical voltage fluctuations.
3. Transparency: New Indian labels often lead in "clean label" transparency compared to legacy global players.

A Resolution That Compounds

Unlike fitness goals that may fade by February, switching what we buy compounds quietly. Each purchase reinforces demand, encourages local competition, and improves quality.

This New Year, before you click "buy" or pick a box off the shelf, take a 10-second pause:

• Is there a credible Indian option? (Check the "Country of Origin" label).
• Does it offer better value? (Compare the price per unit).
• Does it deserve a chance? (Read a review of a local D2C brand.)

If enough consumers ask these questions, the impact will outlast the calendar year. The most meaningful resolution for 2026 isn't just about what we add to our lives—it’s about whom we empower with our spending.