Changing Landscape of India’s Income, Expenditure and Population

India’s income and spending levels recorded sustained growth over 2010-2015, on the back of the country’s strong economic expansion. However, on a per capita basis, income and spending levels in India remain below Asia Pacific averages, and its income gap continues to gradually widen. In the long run, consumption is expected to gain an increasingly important role in the Indian economy, while trends like lifestyle changes and population ageing will also influence consumer spending patterns.

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Opportunities with Urbanisation

  • Urban households generally enjoy higher purchasing power
  • Greater demand for consumer goods and services
  • Transition to smaller households can boost spending and give rise to new consumption trends
  • Investment opportunities in housing, utilities, transportation and other urban infrastructure

 

Challenges with Urbanisation

  • Over-crowding leads to housing shortage and a rising number of people living in slums
  • Lack of urban job opportunities exacerbates poverty and inequality
  • Pollution and associated health issues
  • Inadequate infrastructure of improved water, sanitation and electricity affects the business environment in urban areas

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India’s mega-cities centres are home to urban consumer and their varying consumption patterns:

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