Page 108 - Nuvama | IC Report 2023

• MANUFACTURING • NEW ENERGY • URBANISATION • CONSUMPTION PREMIUMISATION • EQUITY SAVINGS CULT

Young population and rising urbanisation
Rabindranath Tagore once said “Age considers; youth ventures”. Hence, a young population is a
necessary (although insufficient) condition to lift aspirations and affluence.
Young population – Shifting aspirations and attitudes
In the Demography section, we highlight India is endowed with a young and large working age population
Millennials (aged 15–64). Out of this, the share of millennials is very high. Millennials refers to the population
refers to the cohort born in 1980s, 1990s and 2000s while GenZ refers to those born in late 1990s and early 2000s.
population cohort
born in 1980s, 1990s This classification of population is purposeful; it helps identify behavioural trends. Since the world
and 2000s while is changing apace with fast-evolving technologies, the global and national ecosystems – attitudes,
GenZ refers to those incomes, beliefs – too have been undergoing changes—sometimes tectonic. Therefore, mapping the
born in late 1990s and early and adolescent days of the above-mentioned cohorts to global and national order can help us
early 2000s understand the behavioral aspects and attitudes of these segments.
From midnight’s children to liberalisation’s offsprings – The rise of Gen Z and millennials
Millennials and Gen Z are ‘summer’ children, which is to say they haven’t seen harsh economic winters
in their lifetimes. Their childhood and adolescence coincided with the era of reforms (1991 onwards)
and pickup in economic growth. They have seldom experienced famines and food shortages that their
parents and grandparents confronted.
Besides, this generation is much better informed and more confident of their incomes. By 2030,
millennials and Gen Z shall make up 77% of India’s population compared with 60-65% in the US
and China. This means a significant shift in aspirations and attitudes of population, and heralds a
tremendous change in India’s consumption landscape.

India population by age cohort
Exhibit 4:
In 2030, 77% of
India’s population Age in years
will comprise 6% 8%
milennials and -3% 4% 20% 18% >=65
Generation Z 9%
11%
6% 8%
60-64
11%
37% 14%
37%
(Millenninals
born during 50-59
1981-2005)
33%
33% 25-49
18%
18%
2018 11% 15-24
27% 24%
18% 16%
<15
Median age 2018 2030 2030 2030 Generation Z
(years) 28 31 40 42 (born post-2005)

Source: Euromonitor, Nuvama Research

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