According to World Economic Forum (WEF), with an annual GDP growth rate of 7.5 per cent, India is currently the world's sixth-largest economy. By 2030, domestic private consumption, which accounts for 60 per cent of the country's GDP, is expected to develop into a USD 6-trillion growth opportunity.
Commenting on the report, Zara Ingilizian, Head of Consumer Industries and Member of Executive Committee, World Economic Forum, said "as India continues its path as one of the world's most dynamic consumption environments, private and public-sector leaders will have to take shared accountability to ensure such consumption is inclusive and responsible.
Notwithstanding the significant growth in consumption, critical societal challenges will need to be addressed, including skills development and employment of the future workforce, socio-economic inclusion of rural India, and creating a healthy and sustainable future for its citizens.
The report titled 'Future of Consumption in Fast-Growth Consumer Market – India' noted that growth of the middle class will lift nearly 25 million households out of poverty.
As per the report, growth in income will transform India from a "bottom of the pyramid economy" to a middle class-led one.
Future consumption growth will mainly come from rich and densely populated cities and the thousands of developed rural towns.
"India's top 40 cities will form a USD 1.5 trillion opportunity by 2030, many thousands of small urban towns will also drive an equally large spend in aggregate. In parallel, there will be an opportunity to unlock nearly USD 1.2 trillion of spend in developed rural areas by improving infrastructure and providing access to organised and online retail," WEF noted.
To unlock the potential of these opportunities and to ensure equitable growth, the report identified three critical societal challenges that need to be addressed -- skills development and employment for the future workforce, socio-economic inclusion of rural India and healthy and sustainable future.
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