INDIA - WORLD'S FIFTH LARGEST CONSUMER ECONOMY CLAIMS MCKINSEY GLOBAL INSTITUTE INDIA NEWS HEADLINES STORY
Over the next 20 years, India will likely grow to become the world’s fifth-largest consumer economy. A study by the McKinsey Global Institute suggests that if India can achieve 7.3 % annual growth which is a reasonable assumption, if economic reforms continue, then the consumer spending will quadruple, from about 17 trillion Indian rupees ($372 billion) in 2005 to 70 trillion rupees in 2025. The dramatic growth in India’s middle class, from 50 million to 583 million people, will power this surge. The spending patterns of the Indian Middle Class is poised to shift dramatically as expenditures grow rapidly on discretionary items ranging any where from personal products to consumer electronics. The Incumbents will have to really put up a fight to retain their market dominance, while attackers could find lucrative ways to exploit the evolving tastes of India’s massive new middle class population as a whole.
