India set to become third-largest consumer market
India is set 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, as per a World Economic Forum report. 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 in India. According to the World Economic Forum (WEF), with an annual GDP growth rate of 7.5 percent, India is currently the world’s sixth-largest economy.
- As per the report, growth in income will transform India from a “bottom of the pyramid economy” to a middle class-led one.
- By 2030, domestic private consumption, which accounts for 60 percent of the country’s GDP, is expected to develop into a USD 6-trillion growth opportunity.
- The report stated that if realized, this would make India’s consumer market the third-largest in the world, behind the US and China.
- The future consumption growth is expected to come from rich and densely populated cities and the thousands of developed rural towns.
- The report stated that India’s top 40 cities will form a USD 1.5 trillion opportunities by 2030, many thousands of small urban towns will also drive an equally large spend in aggregate.
- It noted that there will be an opportunity to unlock nearly USD 1.2 trillion of spending in developed rural areas by improving infrastructure and providing access to organized and online retail.