After China, India is poised to be the next consumer story in the world over the next 20 years, creating opportunities ranging from packaged snacks and restaurants to baby products, smartphones and scooters, reports Rahul Thekdi in Mumbai. With a young, tech-savvy population, improved education and rapid growth, India is creating a consumer market deeply tied into mobility and connectivity, a Goldman Sachs report on Asian Consumer has noted. Unlike China, where the consumer story was driven by an emerging urban middle class, in India it will be the much larger urban mass.
According to the report, in China the first wave of the consumer story was powered by the 150 million urban middle workforce and 1.4 million wealthy “movers & shakers”. But in India, the consumer growth story would be driven by the urban mass.
This is because India’s urban middle class is much smaller at just 27 million working people, or 2% of the population. “We believe most of the new generation of India’s youth will first fall into urban mass, a cohort that is 130 million people today, earning $3,200 on average. The expansion of urban mass, both in size and income level, will be the key driver of India’s consumption story in the coming 5-10 years,” the report says.