India to Be Third Largest Consumer Market
In a report released mid-March, the Boston Consulting Group said that by 2025 India will be the third largest consumer economy in the world.
Forbes reports the factors in India’s favor:
A greater number of the underprivileged population that used to account for 44% in 2005 have moved up the ladder and this has raised the number of the working class to 45%.
Between 2005 and 2016, what the Boston Consulting Group refers to as the “aspirers” — or the upwardly mobile — went from 8% of Indian households to 15% and by 2025, this sector is projected to be 20%.
Affluent Indians have gone from 3%, or roughly seven million households back in 2005 to 17 million last year. That is seen rising to 33 million by 2025.
Some 60% of Indians prefer and are willing to pay extra for a Made in India stamp.
Now, as adult children move out of their parents’ homes and seek accommodation, the real estate market is looking up.
Educational opportunity, as well as healthcare for women in India is getting better, the consulting group says. From 2005 to 2014, the enrollment rate of girls in secondary education went from 45.3% to 73.7%. It’s now greater than that of boys in the high school level.
In higher education the enrollment rate of young women is 20% versus 22% for young men. “This shift will have a broad impact on societal factors long term, such as workforce demographics and economic independence. If you have something to sell, India is now an on-radar must,” reports Forbes.