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Monday, August 20, 2007

The Indian consumer market








According to McKinsey global research, it is estimated that Indian consumer market will be fifth largest in the world by 2025, provided the economic growth remains steady at the same pace as of now.

Currently the Indian consumer market stands at the 12th rank. Indian incomes will almost triple over the next two decades and India will climb from its position as the 12th-largest consumer market today to become the world's fifth-largest consumer market by 2025. It is believed that the Indian middle class will expand from the current size of 50 million to an approximately ten times larger size of 583 million. 291 million people are expected to move from below poverty line to a comfortable life. Moreover, it is expected that 23 people in India will be among the richest people all over the world.

Conditions:



Indian incomes will almost triple if
· the government forges ahead on a systematic reform program
· promotes competition
· contains the fiscal deficit and inflation
· invests in infrastructure, healthcare and education.


Our work with developing economies shows that such concerted actions are instrumental in boosting productivity, reducing poverty and providing people with more sustainable lifestyles.

The smaller cities will also contribute highly to the Indian growth and Urbanization is the major future happening, which will change the scenario. The spending power will increase considerably resulting in the increased growth. By 2025 food, beverages and tobacco will still be the biggest category, although its share will have dropped from 42 per cent to 25 per cent, and this will be followed by transport and health care. Communications, which account for only two per cent of spending today, will be one of the fastest expanding categories with growth of over 13 per cent a year (on an aggregate basis). Apart from this, transport, personal products and services, health care, and education and recreation will all see over eight per cent annual growth and these categories will evolve into sizeable markets. India's relative share of world markets will rise in virtually every product and service category.

1 comment:

Jigar said...

good information !! keep it up !!