The future of India is looking bright. With a population of 1.3 billion people, India is the second most populous country in the world and is expected to overtake China as the most populous country by 2027. India is also the fastest growing major economy in the world, with a GDP growth rate of 7.2% in 2019-20. This rapid economic growth has been driven by the emergence of a strong consumer market, which is expected to more than double by 2031, surging to $5.2 trillion from $2.3 trillion in 2022, according to S&P Global Market Intelligence’s Global Consumer Markets Service.
The Indian consumer market is expected to be driven by a growing population and increasing household incomes. India’s population is expected to reach 1.45 billion by 2031, and the average household income is expected to rise from $3,800 in 2020 to $7,400 in 2031. This growth in population and income will create a large consumer base with increased purchasing power.
The Indian government has taken steps to facilitate this growth by introducing reforms such as the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC). These reforms have helped to create a more efficient and transparent business environment, which has encouraged investment and increased consumer confidence.
The digital revolution is also playing a major role in the growth of the Indian consumer market. India has the second largest internet user base in the world, with over 600 million users. This has enabled businesses to reach out to a larger customer base and has enabled customers to access products and services more easily. The Indian government has also launched initiatives such as Digital India and Make in India to promote the use of digital technologies.
The Indian consumer market is also being driven by the increasing demand for luxury goods. India is home to a large and growing middle class, which is increasingly spending on luxury items such as cars, electronics, and apparel. This trend is expected to continue in the future, as more people become affluent and have more disposable income.
The Indian government is also investing heavily in infrastructure, which is expected to have a positive impact on the consumer market. The government has launched initiatives such as the Pradhan Mantri Gram Sadak Yojana and the Bharatmala project to improve the country’s road network. This will enable businesses to reach out to more customers and will also improve the logistics network, which will help businesses to deliver products and services more efficiently.
In conclusion, the future of the Indian consumer market looks very promising. With a growing population, increasing household incomes, and government initiatives to facilitate growth, the Indian consumer market is expected to more than double by 2031. This will create a large consumer base with increased purchasing power, which will drive the growth of the Indian economy.