India''s Market Will Be World''s Fifth Largest By 2025

Mumbai: India will pole-vault into the premier league of the world''s consumer markets by 2025. From the current 12th rank, the study anticipates that India''s market will be the world''s fifth largest, surpassing Germany. Over 23 million Indians more than the population of Australia today will number among the country''s wealthiest citizens. At the same time, overall economic growth will benefit India''s poorest people, with the deprived segment falling from 54 per cent of the population in 2005 to 22 per cent by 2025.

The combination of rapidly rising household incomes and a robustly growing population will lead to a striking increase in overall consumer spending. The study forecasts that aggregate consumption in India will grow fourfold in real terms, from Rs 17 trillion at present to Rs 70 trillion by 2025. The study is predicated on India''s real GDP growth ranging between 6 per cent and 9 per cent a year over the next two decades. This optimism is justified because of the substantial scope for continued productivity increases in Indian businesses, the growing openness and competitiveness of the Indian economy, and favourable demographic trends. If India achieves this growth path over the next two decades, Indian income levels will almost triple. Interestingly, communications, which accounts for only 2 per cent of spending today, will be one of the fastest expanding categories with growth of over 13 per cent a year.