Sharing insights into India’s evolving consumer landscape and reflecting on his visits to the country over the past 20 years, Luke Barrs, Managing Director of Fundamental Equity at Goldman Sachs Asset Management, recalls that in earlier years, the focus was on basic needs like food, clothing, and shelter, with people aspiring to improve their living standards by purchasing essential products. But today, while the aspirations are for a better life remains, the way people achieve it is changing due to the digitalisation of India.

In an interview with CNBC TV-18, Barrs highlighted that initiatives like the UPI digital payment system and fast delivery services are transforming how people access goods and services, and influencing how they spend their discretionary income.

As disposable income rises, particularly in urban centres, Barrs observed that the younger generation of around 750 million millennials and Gen Z individuals are now seeking experiences in addition to basic products, signalling a shift in spending habits. He described this as an exciting area of growth, though he emphasised the importance of a long-term perspective in investing, stating that recent market corrections could present appealing entry points for investors.

Regarding equity allocation in emerging markets, particularly India, Barrs mentioned a common view he has encountered, that while this decade may be significant for India, the entire century could belong to the country. He sees extensive opportunities for capital investment in India, both in the private and public sectors, with the potential for substantial returns across various asset classes.

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For the entire interview, watch the accompanying video

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