Over 300 million Indians (63 million households) are expected to have a household income of over US$6,000 by 2015 (over US$30,000 in PPP* terms). India is experiencing a rapid growth in consumer spending. The economic reforms since the early nineties have unleashed a new entrepreneurial spirit creating a vibrant economy supported by rising per capita income.

Burgeoning markets

ESTIMATED POTENTIAL BASED ON COMPARABLE BENCHMARKS Source: Industry estimates, TSMG

Fast-growing disposable incomes, increased availability and use of consumer finance and credit cards complement the keenness of the average Indian to adapt to and assimilate global trends. This has led to the creation of a rapidly growing consumer base and one of the world’s largest markets for manufactured goods and services.

Growth in key sectors like infrastructure, services and manufacturing continues at about 10-12% p.a.

The market for basic goods such as groceries and textiles is already large, driven by the demands of an enormous population. Markets for other products are equally large and growing rapidly.

• Over 225 million telephone subscribers, growing at over ~75 million p.a.
• Over 8 million TV sets and 4 million refrigerators are sold annually and expected to growth at 20% p.a.
• Total production of vehicles has crossed 11 million in 2006-07, up from 8.6 million in 2004-05. In 1998-99, this was only 4.2 million.

India has been ranked 1st by AT Kearney in a Global Retail Development Index of 30 developing countries and is seen as a potential gold mine.