Private Consumption, a $6 trillion Opportunity

Private Consumption, a $6 trillion Opportunity - Background Context

Recently World Economic Forum (WEF) released the important report titled Future of Consumption in Fast-Growth Consumer Market – India.

Private Consumption, a $6 trillion Opportunity

Highlights of the report

  • As per the WEF report, it is expected that the India’s Domestic Private Consumption to jump and develop into $6 trillion growth option, which is also the contributor and large portion of the Gross Domestic Product (GDP). As of now the it is $1.5 trillion.
  • This potential growth option comes with its own challenges and opportunities. To grab this fantastic growth opportunity, Indian has to address its socio-economic issues, generate enough employment, skills development, making potential market more accessible for the rural community and sustainable future for Indian citizens.
  • If this Growth Opportunity properly addressed and nurtured in the ideal way, then India’s consumer Market will be the third largest in the entire world after United States of America (USA) and People’s Republic of China.

Major driving factors

  • Rising Income, benefit sharing, inclusive (FDI) market for foreign investors/brands and consumers products.
  • Ever rising middle class, that is expected to uplift the livelihood of 25 million household and families from their unfortunate poverty. On the other hand India will witness 700 million millennials and new generation consumer class.

Challenges ahead

  • The policy makers need to be more proactive for the Growth Potential/Opportunities realization. Policies devised need to address inclusive factors such as economic and consumption growth.
  • The study identifies, three important key factors
    • Skill Gaps
      • Expected increase in 10-12 million working age group (modern labour class), in 10 years. At present the Indian society faces huge challenge, lacs the infrastructure to fill the gap of providing the working class with just the right and required skill set. According to the WEF report, number close to one-half of Indian modern labour class require proper education and reskilling by the year 2022 to accommodate the talent request of the near future.
    • Access-Barriers
      • In year 2030, 40% of the Indian population will live or reside in urban regions, thus the Access Barriers such as physical connectivity and proper inter-linked road network, communication and digital connectivity and regular income source are the identified gaps restricting spending power and overall well-being of the rural dwellers. These Access Barriers need to be addressed to safeguard socio-economic incorporation in India over the next decade.
    • Health and Liveability
      • This Business and Policy-Makers in association with Indian Government will have ensure/safeguard health and liveability for Indian citizens through low-cost healthcare, sustainable development options and find long-term solution for the urban overcrowding.

Important Links (External)

  1. Future of Consumption in Fast-Growth Consumer Markets - INDIA. (Report by WEF)

Post a Comment

Should you need any further information, please do not hesitate to contact us.

Previous Post Next Post