India- Ahead 2012

More than 35% of our population is below the age of 20. By the end of 2020, it is expected that 325 million Indian will reach working age, which will be the largest in the world.This will come at a time when the rest of the developed world will be faced with an aging population. It is estimated that by 2020, US will be short of 17 million people of working age, China by 10 million, Japan by 9 million and Russia by 6 million. At the same time, India will have a surplus of 47 million working people. Even when compared to developing countries, Brazil’s working population is set to grow by 12%, China’s by 1%, Russia’s will decline by 18%, while ours will grow by 30%. This is the reason Goldman Sachs predicted that only India can maintain a 5% growth rate until 2050.

With a huge working population will also come a huge consumption boom, as it has happened in China. China accounts for 20% of world’s consumption of aluminum, 35% of the global demand of steel and coal, and 45% of the worldwide cement purchase. The challenge for India will not only be economic growth, but also make it sustainable and bearable for the environment.

But keeping everything in mind, India will become the biggest consumers in the world, that means right from education to FMCGs the demand will cross countries like USA (already a saturated and deteriorating market) and UK.

Before the FDI policy opens in India, the Foreign investors should look at these opportunities and establish their brand, long ahead the demand reaches to the peak. Unlike China, India has its own consumption pattern which is influenced with the strong ethnic root as well as colonial rules.
The brands/ retailers / companies should consider a serious consumer research before venturing into this subcontinent otherwise they will face constrains and lagged growth.