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...From Data to Decisions
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Why
India ?
A
McKinsey study estimates that, given the expected growth in GDP, domestic consumption
is expected to increase four fold from $380bn in 2007 to $1,560bn by 2025.
The median age of the population in India is 25 years, which is the lowest
as compared to other developing countries such as Brazil (29 years) and China
(34 years) and developed countries such as the US (37 years) and the UK (40 years).
Population within the 15 to 34 age bracket is over 400mn, comprising >30% of
India's total population. These compelling demographics will ensure increase in
consumption.
It is estimated that household disposable income will grow
at a CAGR of 5.3% from INR 113,744 (~$2,528) in 2005 to INR 318,896 (~$7,087)
in 2025.
Rapid urbanisation has led to creation of nuclear families.
The number of working couples has increased significantly resulting in rising
disposable income and changes in lifestyle.
As incomes rise the country
will witness significant growth in the middle class. Middle class households are
estimated to grow at a CAGR of 11% to reach 128m by 2025. This combination of
rising disposable income and growing middle class will increase the overall consumer
spending.
As per McKinsey, by 2025 Indian middle class population will
have expanded dramatically to 583m -- this is almost twice the current population
of the US. | 
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IndiaNotes
is proprietary product of ValueNotes Database Pvt. Ltd. ©
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