The situation as on 1 April 2017
Consumption in India is set to triple to $4 trillion by 2025.
There is great scope for Make in India.
Consumption in India is set to triple to $4 trillion by 2025, BCG released a report. You can say presently India's consumption $1.3 trillion. Rest of the GDP say around 0.8 trillion dollars goes into investment.
So manufacturers of goods and producers of services have the reason to plan and invest for around #2.7 trillion goods and services for the next 8 years. On an average it comes to $0.35 trillion extra consumption per year.
Interesting trends brought out by the BCG report.
Many more consumers would want to take international vacations. So additional business for travel firms.
120 news cities will emerge and will have average household income that is same as today’s major metropolitan areas. Businesses that invest in smart cities will have durable business in those cities.
As income increases and consumption increases, the following items will have continued increase in consumption.
Food items
Yogurt
Fruit juice - Fresh and packaged
Baby food
Chocolates and confectionaries
Health food
Household goods and Energy
Water purifiers
Microwave
Washing machine
Air conditioner
Electricity
Car
Mobile devices
Health. Education and Leisure
Schools - More and more private schools - More fees will be paid
Skin care
Diet supplements
Restaurant eating - Fast food outlets
Links for BCG Report
https://www.bcg.com/d/press/21march2017-new-indian-changing-consumer-149010
https://www.bcg.com/publications/2017/marketing-sales-globalization-new-indian-changing-consumer.aspx
Vision 2025 of many industrial sectors are available. Have a look at them to become aware of the opportunities provided by the growth plan of each industry in their supply chains.
India Vision 2025 - $7 Trillion GDP
http://guide-india.blogspot.com/2015/02/india-vision-2025.html
Challenges
Yes, the forecast is there at macro level that Indian consumption will grow. The challenge is estimating the demand of individual products to make investment plans. Also at the moment, the general feeling is that installed capacity is not utilized to the appropriate levels. Hence established industrialists are not coming forward to invest further. Only disruptors and innovators are investing. Innovators are persons with new products that are addressing the unfulfilled needs of the customers. They find out the needs of customers not fulfilled the present range of products and come out with new products. They have a ready market. If they succeed, the unutilized capacity of the existing producers will remain unutilized only and either that capacity is to be retired or modified in the future. Disruptors are new entrants coming with new business models and products which the present industry has not thought of. Product innovations are more traditional and many times they are of incremental nature. Disruptive innovations are truly creative acts and carry substantial risk. But the persons behind such innovations want to try their idea and fail if it comes to. When they succeed, the whole industry can collapse and new players emerge in that product space. In India at this stage innovations of incremental or disruptive nature are required in number of industrial sectors.
So a study of demand - supply situation is needed in various products.
No comments:
Post a Comment