Source: Wall Street
Analysis predicts that by 2027, India will have a "rich population" and become the third largest consumer market in the world.
With the increase of disposable income, the consumer department is the key driving force for economic growth in India.
McKinsey’s Mumbai Office partner Abhishek Malhotra recently accepted a media interview that India, which seriously relies on service and manufacturing, is expected to transform into a economy that pays more attention to consumption in the future.
Before McKinsey published this comment, a report was released to provide more support for this view.
In the report released last week, Goldman Sachs predicted that by 2027, India will have about 100 million "rich people", that is, annual income of more than 10,000 US dollars.In contrast, India currently has a revenue of more than 10,000 US dollars, accounting for 4%of the Indian working age population. In 2015, this number was only 24 million.
Go to the third largest consumer market in the worldNew Delhi Stock Exchange
Malhotra predicts that with the increase in the number of households in high -income households, by 2027, India will become the world’s third largest consumer market.
Data from BMI shows that about 33%of India’s 1.4 billion population is between 20 and 33 and is the main force of Indian consumption growth.
At the same time, many multinational companies are setting up and expanding their business in India, and they believe that the Indian consumer market has broad prospects.
Taking the local giant Tata and multinational coffee brands Tata Starbucks as an example, the company announced in January that 1,000 stores will be opened in India by 2028.
Starbucks currently operates about 400 stores in 54 cities in India.According to reports, other coffee chain brands such as Tim Hortons and Costa Coffee have been striving to enter the Indian market.
Increase increased income to promote the soaring stock market and real estate, and the amount of credit cards doubled
The increase in Indian residents’ income clearly reflects the financial market.
The market value of the Indian stock market has increased by more than 80%in the past three years, and became the seventh largest stock market in the world in December last year.
Due to the increase in housing demand, from fiscal 2019 to 2023, Indian house prices have soared by more than 30%, and before that, the fiscal year 2015-2019 rose only 13%.
Goldman Sachs expects that in addition to investment growth in the future, Indian gold and real estate sales will increase significantly.
Goldman Sachs said that the increase in residents’ income also promoted last year’s credit card expenditure more than doubled compared with 2019.
The report shows that the current credit card used by India is about 90 million, which is much higher than 50 million in 2019. Some people who have more than $ 10,000 an annual income of more than $ 10,000 hold more than one credit card.Chennai Stock
Wealth Mills Securities stock strategist Kranthi Bathini said: "India’s focus is to digitize credit cards and payment … and the young population is the key driving force for credit card growth."
Tourism, jewelry, etc. are expected to usher in an outbreak
Malhotra said that people have great demand for tourism, jewelry, and meals, and India’s free -scale control expenditure is increasing. He expects that in the next two decades, the consumption fields such as tourism, jewelry and services will achieve significant growth.
"When the income is low, most of people’s money will be spent on food and housing … Now these have been solved, and the remaining free control expenditures can be used in other aspects."
According to Goldman Sachs, by 2030, India’s travel expenditure will become the fourth highest in the world, which is mainly due to the growth of middle -income families.
In order to meet the booming travel needs, Indian Airlines ordered 150 737max aircraft to Akasaair on Thursday to set a record of the company.
In addition, Goldman Sachs predicts that 263 hotels in India will also benefit from the growth of domestic tourism.
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Udabur Wealth Management