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While the Indian consumer market took a nosedive after the pandemic, long-term future prospects look much better for the country. India will have the third-largest number of high-income households globally after the US and China by 2030, the report said. Asia would witness a $10-trillion consumer market growth.
India’s consumer market could grow by $1.8 trillion over the next decade while Asia would contribute over $10 trillion in the same period, McKinsey said in its report. Asia’s consumer story over the next 10 years is about scale, growth, and a diverse consumer market, according to Jonathan Woetzel, a senior partner at McKinsey.
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Mahima Chugh, a McKinsey partner in Mumbai, said that though consumers in Asia are facing COVID-19 challenges, Asia would still contribute to half of all global consumption growth in the next decade. It is expected that one of every two upper-middle-income and above households would be from Asia and one of every two purchase transactions would originate from the Asian region.
The rise of India
India will have the third-largest number of high-income households globally after the United States and China by 2030, the report said. It also showed a 16 percent decline in household size, from 5.5 to 4.5 persons from 1999 to 2015.
The report further stated that Mumbai would be the fourth-ranked city in Asia for high-income households and over 55 percent of the country’s population would belong to the consuming class by 2030 compared to 24 percent in 2021 and a bare 9 percent in 2000.
As people above the age of 60 are embracing the internet and are not hesitant to make online transactions, their consumption may actually grow twice as fast as the consumption of the general population.
E-commerce players, contributing a CAGR of 25 percent from 2020-2025, with the mix of traditional trade and modern eB2B platforms like Reliance and others, will also play a role in the growth story.
(Edited by : Shoma Bhattacharjee)