NEW DELHI: India is expected to become the fifth largest consumer market in the world by 2030, as the country gains from rapid growth in the retail, FMCG and e-commerce sectors, according to a new industry report.
The forecast, jointly prepared by professional services firm Deloitte and the Federation of Indian Chambers of Commerce and Industry (FICCI), was released to coincide with FICCI’s Massmerize 2017 conference, which is exploring how business and government can accelerate the growth of consumer retail.
According to the report, the consumer sector is one of the most dynamic and fastest growing industries in India, although challenges remain, such as poor basic infrastructure and a complex regulatory and taxation regime.
“Consumer retail forms an integral part of the industry with a current estimated size of more than INR45 trillion. It is further expected to witness a Compound Annual Growth Rate (CAGR) of over 10% in the period 2016-21 to reach a size of INR85 trillion by 2021,” the report said.
“Thus, it plays a pivotal role in the growth story of Indian economy through noteworthy contribution towards the national GDP, attracting significant foreign investments and technologies, and generating vast employment opportunities.”
Harsimrat Kaur Badal, the Cabinet Minister for Food Processing, presented the FICCI-Deloitte report to delegates as she underlined the need for greater synergy between the government and industry to channel efforts into reducing food waste and raise the quality and quantity of processed food.
She added that the food processing sector, which produces 70% of all the food sold in India, is one of the largest job-generating industries.
She also expected that the new Goods and Services Tax (GST) will help to remove blockages to the transportation of food, including perishables.
The World Food India exhibition in early November will be another opportunity for industry, government and experts from around 30 countries to take matters forward.
Data sourced from FICCI; additional content by WARC staff