The New Economics of 'Going Out'
For many young Indians, the rising cost of living has reshaped their social lives. Where previous generations might have prioritised spending on meals out, concerts, or physical goods, Gen Z faces a different financial calculus. Digital entertainment—from
streaming subscriptions and mobile gaming to virtual goods—offers a more accessible and cost-effective alternative. An analysis of UPI transactions shows that while essentials and bill payments form the core of their spending, recurring entertainment subscriptions to services like Netflix and Spotify are a firm fixture. This generation, born between 1997 and 2012, has grown up with digital payments at its core, making small, frequent online purchases for entertainment feel seamless and natural.
Redefining the 'Experience Economy'
The millennial mantra was to spend on 'experiences, not things'. Gen Z has taken that idea and logged it online. For this cohort, a collaborative session on a game like BGMI or Free Fire is a social event, and attending a virtual concert within a gaming platform is a shared cultural moment. These are not solitary activities; they are deeply social. In India, 74% of Gen Z users spend at least six hours a week playing games on their phones, citing socializing as a key reason. This generation doesn’t distinguish between online and offline life in the same way their predecessors did; for them, digital interactions are just as real and meaningful, making spending in these spaces a natural extension of their social lives.
Investing in Digital Identity and Community
In the digital world, your identity is curated. A unique skin for a game character, a badge from a favourite streamer, or access to an exclusive Discord server are all ways Gen Z expresses individuality and belonging. Spending money in these digital spaces is not just for fleeting fun; it's an investment in their social standing and identity within online communities. These digital platforms are where India's 377 million Gen Z consumers explore their interests and build identities around their passions. They are spending more than half of their digital time on the 'open internet'—channels like OTT, podcasts, and music streaming—where they can delve deeper into their interests away from traditional social media.
The Rise of the Creator Economy
Gen Z's entertainment spending is also becoming more direct and personal. Instead of just paying a large corporation for content, they are increasingly spending money to support individual creators. This can be through YouTube channel memberships, subscriptions on platforms like Twitch, or buying merchandise. This shift is part of India’s booming creator economy, which is projected to influence over a trillion dollars in consumer spending by 2030. A staggering 83% of Indian Gen Zers consider themselves creators, blurring the line between consumption and production. They trust influencers and peer recommendations over traditional ads, making direct support for a creator a more authentic form of consumption.
A Major Force in the Indian Economy
The scale of this shift is immense. India's Gen Z already accounts for approximately 43-46% of the country's total consumption, valued at around $860 billion through both direct and influenced spending. While much of this is currently influenced spending within the family household, it shows their power in directing where money flows. As this generation enters the workforce in greater numbers, their direct spending power is projected to more than double to $2 trillion by 2035, cementing their role as the dominant force in India's consumer landscape. Their preferences are already forcing brands to adapt, prioritising digital-first engagement, authenticity, and seamless online experiences.
