A recent study by the Boston Consulting Group (BCG) and the Confederation of India Industry (CII) concluded that India’s consumer spending is likely to grow four times to USD3.6 trillion by 2020. This growth can be attributed to rising household incomes and economic growth in the country.
"Consumer spending in India will continue to roar, but the firms that try to capture it have to work hard. India is a big, growing consumer market, but not an easy one," said Abheek Singhi, a partner in BCG and an author of the report
The report stated that the main areas of consumer spending would remain consumer durables, housing, communication, transport and food.
Despite global economic uncertainties, India’s global consumption would have doubled to 5.8 percent, by 2020.
The Indian government however, expects economic growth to be 6.9 percent in this financial year, the slowest pace yet, in three years, reported the Economic Times.
The slowing economic growth in India can be accredited to a fluctuating global economy, economic reform gridlocks and last year’s unyielding hikes in interest rates.
India is slowly moving towards a western-style consumer economy and analysts are investing their hopes on the growth of the retail and financial service sector.