According to a recent study by The Boston Consulting Group (BCG), and The Confederation of Indian Industry (CII), titled, ‘The Tiger Roars: An In-Depth Analysis of How a Billion-Plus People Consume’, the overall consumer spending in India is likely to expand 3.6 times. The report, which studies the shape and size of consumption expenditure in India, says that the spending would move from $991 billion in 2010 to $3.6 trillion by 2020, a projected growth rate of 14 per cent.
By 2020, India will constitute 5.8 per cent of global consumption – more than double the 2.7 per cent it now represents.
Food, housing & consumer durables, and transport & communication are expected to be the top three categories, accounting for 65 per cent of consumption in 2020. The professional affluent class is expected to dominate consumption in 2020, accounting for 26 per cent of total consumption expenditure, up from 16 per cent in 2010. In contrast, spending by struggler households will decline from 26 per cent in 2010 to 11 per cent in 2020.