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09
January 2019
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World Economic Forum (The Total Investment & Insurance Solutions)
India is poised to become the third-largest
consumer market behind only the US and China; and consumer spending in India is
expected to grow from USD 1.5 trillion at present to nearly USD 6 trillion by
2030, a World Economic Forum report said Wednesday.
According to World Economic Forum (WEF), with
an annual GDP growth rate of 7.5 per cent, India is currently the world's
sixth-largest economy. By 2030, domestic private consumption, which accounts
for 60 per cent of the country's GDP, is expected to develop into a USD
6-trillion growth opportunity. "If realised, this would make India's
consumer market the third-largest in the world, behind the US and China,"
the report said.
Commenting on the report, Zara Ingilizian,
Head of Consumer Industries and Member of Executive Committee, World Economic
Forum, said "as India continues its path as one of the world's most
dynamic consumption environments, private and public-sector leaders will have
to take shared accountability to ensure such consumption is inclusive and
responsible.
Notwithstanding the significant growth in
consumption, critical societal challenges will need to be addressed, including
skills development and employment of the future workforce, socio-economic
inclusion of rural India, and creating a healthy and sustainable future for its
citizens. The report titled 'Future of Consumption in Fast-Growth Consumer
Market – India' noted that growth of the middle class will lift nearly 25
million households out of poverty.
As per the report, growth in income will
transform India from a "bottom of the pyramid economy" to a middle
class-led one. Future consumption growth will mainly come from rich and densely
populated cities and the thousands of developed rural towns. "India's top
40 cities will form a USD 1.5 trillion opportunity by 2030, many thousands of
small urban towns will also drive an equally large spend in aggregate.
In
parallel, there will be an opportunity to unlock nearly USD 1.2 trillion of
spend in developed rural areas by improving infrastructure and providing access
to organised and online retail," WEF noted. The report produced in
collaboration with Bain & Company builds on consumer surveys conducted
across 5,100 households in 30 cities and towns in India, and draws from more
than 40 interviews with private and public-sector leaders.
"It's an exciting future for firms that
wish to unlock the consumption opportunity in India," as stated by Nikhil
Prasad Ojha, Partner and Leader of the Strategy practice at Bain India. To
unlock the potential of these opportunities and to ensure equitable growth, the
report identified three critical societal challenges that need to be addressed
-- skills development and employment for the future workforce, socio-economic
inclusion of rural India and healthy and sustainable future. The Total Investment & Insurance
Solutions
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