Beyond the big cities, Bharat is calling the shots on India’s growth

MUMBAI: India’s growth story is quietly changing address and it no longer reads Mumbai, Delhi or Bengaluru. A new report from Rukam Capital argues that the real momentum in consumption is now being driven by Tier 2 and Tier 3 cities, small towns and emerging urban clusters, where behaviour is shaped less by hype and more by trust, proof and relevance.

Titled Beyond Metros: The Real Story of Bharat’s Next 500 Million, the study lands at a moment when nearly 65 per cent of India’s population lives outside the metros. Backed by GST-led formalisation, rising affordability and deep digital penetration from near-universal 3G and 4G access to the everyday use of UPI, the report positions Bharat as the engine of India’s next phase of consumption-led growth.

Crucially, the research overturns long-held assumptions about non-metro consumers. Far from being impulsive or easily swayed by celebrity endorsements, today’s Bharat shopper is deliberate and research-driven. Discovery is increasingly video-first and social-led, with Youtube emerging as a primary influence, 37 per cent of consumers rely on video reviews, while 32 per cent discover products via social platforms. E-commerce, too, has become a research tool, used by 35 per cent of consumers well before purchase decisions are made.

Trust, the report finds, is the real currency. Word-of-mouth influences 22 per cent of Tier 2 and Tier 3 buyers, while 43 per cent of Tier 3 consumers verify brands through official websites before buying. Customer service matters early, with 32 per cent factoring service interactions into pre-purchase decisions. Sustainability and safety cues also carry weight, influencing 23% of consumers but only when backed by peer reassurance rather than marketing gloss.

Spending patterns reflect discipline over impulse. UPI now powers transactions for 67 per cent of non-metro consumers, while discount tracking is common in Tier 2 cities. Festivals still drive discretionary spending in Tier 3 markets. Quick commerce adoption remains modest at 36 per cent, underscoring that instant gratification is not yet the default outside metros.

Platforms, meanwhile, are valued for utility, not noise. Whatsapp reaches close to 90 per cent penetration and functions as Bharat’s digital backbone. OTT consumption is driven by vernacular relevance, with JioHotstar leading usage at over 54 per cent across Tier 2 and Tier 3 markets. Gaming has also emerged as a serious influence channel, with over half of consumers in these regions responding to in-game advertising.

Commenting on the findings, Rukam Capital founder and managing partner Archana Jahagirdar said the study reveals a consumer who is confident, consistent and grounded. The opportunity for brands, she noted, lies not in aspiration-led messaging but in building trust early, designing for real use cases and staying rooted in local context.

Conducted with Yougov across more than 5,000 respondents in 18 states, the report makes one thing clear: Bharat’s next 500 million consumers are not waiting in the wings. They are already shaping demand, rewriting influence, and setting the terms for India’s trillion-dollar retail ambition.