Despite gross domestic product (GDP) growth, Indian Generation Z or Gen Z is increasingly worried due to a rapidly changing world with heightened anxiety, as global events, economic uncertainties, and environmental challenges increasingly shape their outlook. Unlike older generations, this cohort tends to internalise risks, making them more sensitive to shifts in the economy, politics, and climate.
Their worries are not just about the national picture; they are increasingly focused on personal and financial security, influencing spending habits, career choices and lifestyle decisions. India’s economy expanded at a faster-than-expected pace of 7.8 per cent in the first quarter of the current fiscal year; however, industry estimates suggest that the momentum may be hard to sustain as trade frictions with the United States, weaker external demand and tapering government expenditure weigh on growth.
According to the Ipsos Market Essentials August 2025 survey, about 78 per cent reported anxiety compared with 71 per cent of Indian boomers. Natural disasters and climate change emerged as the top sources of distress (68 per cent), followed by political and social unrest (62 per cent) and US economic policy, including trade tariffs (56 per cent).
In India, the monsoon season wreaked havoc across several states in 2025, triggering floods, landslides, and widespread displacement. Beyond natural disasters, infrastructural shortcomings have compounded their worries, with social media flooded with videos of collapsing bridges, washed-away roads, and damaged public facilities leading to fatalities.
Also Read: Monsoon Fury Tests Himachal Pradesh’s Fragile Economy
These events have made the consequences of climate change and governance lapses strikingly tangible, with Gen Z internalising these risks more acutely than older cohorts, intensifying their concerns about personal safety, resilience, and the reliability of public systems, as well as their financial and future security.
“Several regions around the world have witnessed the impact of climate change and natural disasters, even in India, flooding and landslides, were intense this year, impacting the infrastructure, crops and washing away homes etc. Then, the prolonged wars in Gaza and Ukraine and the political unrest in some countries, and the US's new trade laws and high tariffs, these three factors have upset them. Older cohorts were relatively able to cope better," said Archana Gupta, Country Lead MSU, Ipsos India.
Economic Policies And Trade Cause Global Anxiety
For global citizens, millennials were most overwhelmed with political and social unrest (55 per cent) and US economic policy and potential tariffs (54 per cent), while Gen Z was anxious about natural disasters and climate change (54 per cent). In September 2025, Nepal’s Gen Z played a decisive role in overthrowing Prime Minister KP Sharma Oli amid widespread anger over corruption and economic mismanagement.
Youth-led protests, fueled by frustration over nepotism and systemic inequality, highlighted the generation’s impatience with entrenched political elites and their demand for accountability and opportunity. “The younger generation tends to take macro threats more personally, unlike seniors, who focus on national impacts,” stated Allyson Leavy, Global VP, Market Strategy and Understanding (MSU), Ipsos.
The survey also stated that global citizens (75 per cent) and Indians (67 per cent) were seen to be more concerned about the risk of the US economic Policy and Trade Tariffs for their country, than the risk impacting them personally – global (52 per cent) and 55 per cent. Especially with stringent Trump tariffs and tough immigration and H1B rulings.
Earlier, US President Donald Trump signed an executive order imposing an additional 25 per cent tariff on imports from India, doubling the total duty rate to 50 per cent. The move followed Washington’s conclusion that India continues to directly or indirectly import oil from the Russian Federation.
Additionally, Trump added a USD 100,000 fee for applicants to the H-1B visa programme for skilled foreign workers. Trump's order mentioned "abuse" of the programme and will restrict entry unless payment is made. According to industry estimates, this move is expected to reduce the operating margins of Indian information technology (IT) services companies by only 10-20 basis points in the next fiscal.
In a column for BW Businessworld, Vinod K. Bansal and Ankita Maheshwari discussed how this imposition has significantly altered the global talent landscape. They argued that this policy shift disrupts the cost-benefit equation for companies relying on foreign expertise, compelling them to reconsider their talent sourcing strategies. This development positions India as a more attractive destination for skilled professionals, potentially reshaping the global talent flow and enhancing India's role in the international workforce.
Also Read: How $100,000 H-1B Fee Could Reshape Global Talent & India’s Role
Right Wing Rise Among India’s Gen Z
Amid economic worries highlighted in the Ipsos survey and under an already right-leaning government, a significant section of India’s Gen Z continues to gravitate towards nationalist and conservative narratives. Growing up in a digitally connected, fast-paced environment, they navigate inflation, employment scarcity, and rising living costs, all while being heavily influenced by social media, online communities, and algorithm-driven content. Their concerns over financial security and tangible growth increasingly align with platforms promising stability, development, and merit-based opportunity.
Also Read: Economy & Nationalism: Inside Gen Z’s Pragmatic Tilt Toward Right-leaning Policies
Despite fragile economic conditions, high youth unemployment, and inflationary pressures, many young Indians remain supportive of the ruling right-wing narrative. Analysts note that this reflects a pragmatic calculation: Gen Z prioritises stability, predictable governance, and domestic economic safeguards over abstract ideological debates. Caste and communal dynamics further reinforce this alignment, as segments of youth view nationalist policies as protecting opportunity and merit-based access in a competitive, uncertain environment.
This orientation also shapes business and consumption choices. Young consumers increasingly prefer Indian brands, back government-backed initiatives like Make in India and Atmanirbhar Bharat, and value localised supply chains. Urban youth aspire for entrepreneurship and higher incomes, while rural counterparts focus on access and inclusion. In essence, even amid economic anxieties, India’s Gen Z shows a pragmatic tilt toward the ruling right-wing narrative, prioritising stability and opportunity over ideological purity.
Also Read: Equality & Opportunity: India’s Gen Z Seeks Growth That Includes All, Not Just A Few
As BW earlier reported, Indian Gen Z expects tangible outcomes from the government, prioritising education, skill development, and job creation over symbolic gestures. They seek inclusive growth that addresses urban-rural divides, reduces inequality, and ensures access to healthcare and social protections.
Financial literacy, digital empowerment, and rapid economic opportunities are also high on their agenda, with young Indians favouring policies and initiatives that deliver measurable progress and real-world impact. Meanwhile, the collective spending power of the country’s Gen Z has reached USD 860 billion and is expected to surge to USD 2 trillion by 2035, according to a report by Snap (parent company of Snapchat) and Boston Consulting Group (BCG). |
