Mumbai, 30th July 2026: India’s next wave of consumption growth is increasingly being driven by Urban Bharat, according to a new Urban Bharat – India’s Consumption Story report by Kantar and DB Corp. The report finds that rising affluence and aspiration in Tier-2 and Tier-3 cities of India are fuelling a shift towards branded and premium consumption across 11 high-growth sectors, including Automobile, Personal Finance, E-commerce, Education, FMCG and more- offering actionable insights for businesses, investors and policymakers alike.
The report also introduces the Urban Bharat City Opportunity Index, a first-of-its-kind ranking of the Top 50 cities best positioned to drive India’s next phase of consumption growth, enabling businesses to make investment and marketing decisions based on credible data rather than assumptions.
Biswapriya Bhattacharya, Director, B2B & Technology, Kantar, said “Urban Bharat is rapidly becoming one of India’s most important consumption growth markets, beyond the metros. As affluence rises and a younger, aspiration-led consumer base drives demand across categories, businesses have an opportunity to rethink where future growth will come from. The Urban Bharat report provides brands with robust, evidence-based insights to better understand evolving consumer behaviour, identify emerging opportunities and make more confident decisions across innovation, investment and market expansion.”
Girish Agarwal, Director, Dainik Bhaskar Group, said, “For years, marketers have looked at Bharat through the lens of metro India, often relying on assumptions due to the absence of credible market intelligence. That reality has changed. Today, cities like Jaipur, Lucknow, Surat and Indore are emerging as powerful consumption hubs. Consumers across Tier-2 and Tier-3 India are highly aspirational, digitally connected and increasingly willing to spend across categories. Through this joint initiative with Kantar, our objective is to equip marketers, media planners and businesses with robust insights that help them identify where India’s next phase of growth will come from.”
Key Findings from the report:
1. Urban Bharat is powering India’s next wave of consumption
Nearly one in three urban Indians now lives in Urban Bharat, making it one of India’s largest and fastest-growing consumption markets.
Urban Bharat’s affluent population has grown 76% over the last six years, positioning it as a key driver of India’s consumption economy.
As growth expands beyond the metros, brands will need to reassess market prioritisation, with Tier-2 and Tier-3 cities becoming central to future growth plans.
2. A young, affluent consumer base is accelerating premiumisation
With 33% of its population under 24, Urban Bharat is powered by a young, aspiration-led generation driving future consumption.
Premiumisation is accelerating beyond the metros, with affluent (NCCS A) households rising from 26% to 40% in just six years, prompting brands to rethink products, services and experiences to match these evolving aspirations.
3. Digital adoption is transforming consumer behaviour
Digital payments, banking, investments and e-commerce have become mainstream across Urban Bharat.
One in three consumers now shops online, reflecting rising digital adoption and omnichannel behaviour, providing an opportunity for brands to build seamless experiences across physical and digital touchpoints.
4. Consumers are investing in aspiration and future growth
More than 27% of households spend over 10% of their income on education, signalling a strong focus on long-term aspiration and upward mobility.
Winning in Urban Bharat will require a deeper understanding of regional consumer needs, backed by targeted innovation, distribution and media strategies.
The Urban Bharat Report is available for download here.
About Urban Bharat Report:
The report surveys consumers across Tier-2 and Tier-3 towns with populations of 1-40 lakhs, along with Pune and Ahmedabad, spanning 11 states across North, Central and West India. It tracks consumer behaviour across 11 high-growth sectors: Automobile, Personal Finance, E-commerce, Education, FMCG, Healthcare, Jewellery, Real Estate, Retail, Telecom, and Travel & Tourism.
About Kantar:
Kantar is the world’s leading marketing data and analytics business. We deliver the intelligence needed to power brand growth. We provide the signals that help organisations act quickly and confidently. We empower brands to make effective marketing decisions based on predictive evidence. And we help them craft powerful growth strategies rooted in the connection between consumers, brands and enterprise value.
All this is powered by our uniquely robust human and synthetic data, our unrivalled IP, our AI-native platform and the team of global brand experts that bring this all together. Visit www.kantar.com
About Dainik Bhaskar Group:
Dainik Bhaskar Group is a leading media conglomerate with a strong presence across print, digital, and radio in 14 states. With 61 editions in five dailies – Dainik Bhaskar & DB Star (Hindi), Divya Bhaskar & Saurashtra Samachar (Gujarati), and Divya Marathi (Marathi) – the group serves a vast audience of 14 crore readers across newspapers, digital, and social platforms and holds a prominent position in the Indian media landscape.
Its flagship publication, Dainik Bhaskar, the most awarded and trusted media brand, is India’s largest and the world’s 3rd largest newspaper by circulation.
