Ride India's consumption wave with the HDFC Nifty India Consumption Index Fund!

India is a consumption-driven economy with private final consumption expenditure aggregating to ~ 60% of GDP (Source: IBEF, PIB - Jan 30, 2026). This reflects the daily choices made by individuals that collectively drives a significant portion of India’s economic growth. Consumption has emerged as one of the important policy priorities for the government. The ongoing policy push, briefly outlined below, with supportive tailwinds is likely to benefit the consumption theme amid global uncertainty.

• Income tax relief to boost disposable income
• GST rate rationalization that positively impacted sectors like Autos, Consumer Staples, Consumer Durables, Footwear and Apparel, etc. (Source: PIB)
• RBI rate cuts make loans cheaper
• Good monsoon and low inflation boost consumers’ purchasing power (Source: CMIE)
• Growing religious tourism

Is there an opportunity to invest in growing domestic consumption? Yes, via the HDFC Nifty India Consumption Index Fund! The scheme will invest in companies forming part of the Nifty India Consumption Index. The index tracks the pulse of India’s consumption story. Stocks in the index are selected from sectors like Consumer Non-durables, Healthcare, Auto, Telecom Services, Pharmaceuticals, Hotels, Media & Entertainment etc.^ ^For detailed methodology and list of eligible basic industries, please visit www.niftyindices.com A number of factors may drive India’s consumption in the coming decades

• India's consumption is at an inflection point: For example, countries like China saw a sharp acceleration in consumption after crossing the US$2,000 mark in per capita income in 2006. India’s per capita income crossed the US$2000 level in 2019. Rise in per capita income can lead to increasing wallet share on discretionary spending.
• Demographic Dividend: India has the largest and one of the youngest populations in the world with a declining dependency ratio. The median age is around 28 years in a population of ~ 1.4 bln people suggesting potential for strong domestic consumption going forward.
• Premiumization: Changing income pyramid and higher disposable income leading to premiumization
• Formalization: Shift from unorganized to organized at a faster pace on account of factors like Demonetization, GST, Corporate tax cuts and digitization
• Digitization: Changing consumption landscape may help improve access to products and services

The Nifty India Consumption TRI has outperformed the Nifty 50 TRI over long time horizons Chart 1, Chart element Source: NSE Indices Ltd. and internal calculations. Data from Jan 02, 2006 to Jan 30, 2026 as Jan 02, 2006 is the inception date for the Nifty India Consumption TRI. Past performance may or may not be sustained in the future and is not a guarantee of any future returns. HDFC AMC/Mutual Fund is not guaranteeing or promising or forecasting any returns. *CAGR: Compounded Annual Growth Rate Conclusion
Favourable demographics, urbanisation and rising aspirations may structurally support long-term domestic consumption growth. For those aiming to align their financial journey with India’s Consumer story, the HDFC Nifty India Consumption Index Fund may provide a suitable investment opportunity. The scheme provides exposure across multiple consumption-oriented businesses in a single fund.
Investors can get exposure to the domestic Consumption theme via the HDFC Nifty India Consumption Index Fund (NFO between February 4, 2026 – February 13, 2026). Product Labelling & Riskometer Disclaimer
Views expressed herein as on Feb 6, 2026 involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied herein. Stocks/Sectors referred are illustrative and should not be construed as an investment advice or a research report or a recommendation by HDFC Mutual Fund (“the Fund”) / HDFC AMC to buy or sell the stock or any other security covered under the respective sector/s. The Fund may or may not have any present or future positions in these sectors. HDFC Mutual Fund/ HDFC AMC is not indicating or guaranteeing returns on any investments. Readers should seek professional advice before taking any investment related decisions. MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY Disclaimer: This article is from the Brand Desk. User discretion is advised.