Private Consumption, a $6 Trillion Opportunity
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Private Consumption, a $6 Trillion Opportunity

Rising Income, benefit-sharing, inclusive (FDI) market for foreign investors/brands and consumers products.

· 2 min read

Private Consumption, a $6 trillion Opportunity - Background Context

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

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Highlights of the report

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

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

Challenges ahead

  • The policymakers need to be more proactive in 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

  • An Expected increase in 10-12 million working-age group (modern labour class), in 10 years. At present Indian society faces a 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, a number close to one-half of the 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 the 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 sources 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

  • These businesses and Policy-Makers in association with the Indian Government will have to ensure/safeguard health and liveability for Indian citizens through low-cost healthcare, sustainable development options, and find a long-term solution for the urban overcrowding.