India Might Be The Third Largest Consumer Market Globally

Jan-2019 | 99Strategy | Food & Beverage

India is poised to become the third largest consumer market following the United States and China; consumer expenditure in India is anticipated to spur from $1.5 Trillion to almost $6 Trillion by 2030, the World Economic Forum said on Wednesday.

According to the World Economic Forum (WEF), with annual GDP growth of 7.5%, India is at present the sixth largest economy in the world. By 2030, domestic private consumption, which holds for 60% of the country's GDP, is projected to stand for a growth prospect of $6 Trillion.

If this trend happens to continue, the consumer market of India will become the third largest market globally, after the United States and China, the report said.

Commenting on the report, head of the consumer sector and member of the Executive Committee of the World Economic Forum, Zara Ingilizian said, "India is still one of the paths of being most dynamic consumer environments in the world, with the public and private sectors having a responsibility to ensure consumption is demonstrable and inclusive.

Despite noteworthy growth in consumption, vital public challenges need to be addressed, comprising the development of employment in sync to skills for the future workforce, the socioeconomic inclusion of rural India and the establishment of a healthy and sustainable future for its citizens.

To unchain the perspective of these opportunities and make positive and fair growth, the report recognized three main social challenges that need to be worked on, skills and employment development, a healthy and sustainable infrastructure for future. The report, developed in collaboration with Bain & Company, is based on consumer surveys of 5,100 households in 30 Indian cities and more than 40 interviews with leaders from the public and private sectors.