India's consumer confidence continues to remain highest globally and showed improvement in the fourth quarter of calendar year 2014 (Q4), riding on positive economic environment and lower inflation. Findings reveal that the consumer confidence of urban India increased by three points in Q4 from the preceding quarter. With a score of 129 in Q4, urban India's consumer confidence is up by 14 points from the corresponding period of the previous year (Q4 of 2013) when it stood at 115. The current score helps India stay on top of the global consumer confidence index for the quarter and is followed by Indonesia and Philippines, each of which have a score of 120.
India's market is consumer driven, with spending anticipated to more than double by 2025. The Indian consumer segment is broadly segregated into urban and rural markets, and is attracting marketers from across the world.
Global corporations view India as a vital market for the future. India has a young demographic and a middle class with rising disposable income. The growing purchasing power and the rising influence of the social media have helped the Indian consumers to splurge on good things. A study done by a leading industry body and bank has stated that the consumer spending in India is expected to quadruple to US$ 4.2 trillion by 2017.
A study states that 'Smartphone forecasts and assumptions, 2007-2020' India ranks fourth in the top 10 global smart phones markets. The country had 111 million smart phone connections in the April-June quarter of 2014, behind leader China, US and Brazil and this would lead to India becoming the world's largest middle class consumer market with a total consumer spend of nearly US$ 13 trillion by 2030.
On the back of better incomes and increasing affordability, the consumer durables market is anticipated to expand at a compound annual growth rate (CAGR) of 14.8 per cent to US$ 12.5 billion in FY15 from US$ 7.3 billion in FY12.
Online retailing, both direct and through marketplaces, will grow threefold to become an Rs 50,000 crores (US$ 8.06 billion) industry by 2016
Current foreign Investments
Following are some of the major investments and developments in the Indian consumer market sector.
Government Initiatives and Future Plans
The Government of India has also played a major role in the growth of this segment. It has enacted policies that have attracted foreign direct investment (FDI) and as a result boosted economic growth.