New Delhi: India can be home to the number of third-largest high-income households globally after the United States and China in 2030 with Mumbai tend to become a fourth rank city in Asia for the same thing.
This development is determined to be driven by Asian consumers who are expected to reach half of the growth of global consumption in the next decade, equivalent to the opportunity of $ 10 trillion, showing the latest McKinsey research papers.
In India, consumption is expected to get a boost of $ 1.8 trillion during the period.
“Asian consumers continue to face challenges related to the Covid-19 pandemic, but it will likely contribute to half of all global consumption growth in the next decade,” said Mahima Chugh, Mitra McKinsey in Mumbai.
Some of the factors that will contribute to the story of India’s growth are increasing high-income households and shrinking in the size of the household, doubling classes that consume, the elderly online and the emergence of e-commerce.
In India, for example, the average size of household shrinks with a country that has witnessed a decrease of 16%, from 5.5 to 4.5 people, from 1999 to 2015.
In addition, in 2030, up to 55% of the Indian population can be Being belonging to the consumption class (spend more than $ 11 a day), up from 24% now and 9% in 2000 and the country can represent 27% of the class consuming Asia.
“Asian consumer stories for the next ten years and so on not only about scale and growth, but about growing diversity in the consumer market (in an area that has been very diverse) and how consumers in the region are a new path trailblazing,” Jonathan Woetzel said, Senior McKinsey partner in Shanghai and Director of the McKinsey Global Institute.
Similarly, with more seniors online, their consumption can grow twice as fast as consumption by the entire population.
Consumption by seniors (aged 60 years and above) can grow 1.6 times faster than the overall Indian population, the report said.
New sales channels such as e-commerce which are expected to grow 25% every year up to 2025, are also expected to trigger the story of India’s growth.