Indian Economy: News and Discussion

[sthf]

@Indx TechStyle Partially agreed as unfortunately it seems you too have drank the Paki coolaid. That is a very "post-truth" type thing.

There are little to no objective indices that say Pakistani middle class spends more. From cars, bikes, smart phones, internet usage, consumer electronics, gold etc. However as we all know Pakis are the best where you can't measure shit in numbers like the skills of their pilots.:blah:

 

[Indx TechStyle]

@Indx TechStyle Partially agreed as unfortunately it seems you too have drank the Paki coolaid. That is a very "post-truth" type thing.

There are little to no objective indices that say Pakistani middle class spends more. From cars, bikes, smart phones, internet usage, consumer electronics, gold etc. However as we all know Pakis are the best where you can't measure shit in numbers like the skills of their pilots.:blah:

May be, I'm measuring it will their stock market & consumption rise & slumps.

It suddenly goes up & down.

 

[sthf]

May be, I'm measuring it will their stock market & consumption rise & slumps.

It suddenly goes up & down.

Don't look at their macro indicators. Their politicians & fauj will sell their own mothers for a bargain.

When Pakis say they bought 180,000 thousand cars in 2015-16 they'll conveniently fail to mention that 30-50000 of those are taxis bought under a govt. scheme.

So trust me when I say this, Paki middle class earns half as much in a more expensive society & spends a lot, saves very little and still falls short when compared to Indian middle class.

 

[Indx TechStyle]

Don't look at their macro indicators.

Not looking either, they lag there also.

When Pakis say they bought 180,000 thousand cars in 2015-16 they'll conveniently fail to mention that 30-50000 of those are taxis bought under a govt. scheme.

That is CPEC.
Pakistani Steel & Cement Consumption Temporarily grew faster than India last year just for it.
Overspending for Chinese projects creates an illusion of consumption.

So trust me when I say this, Paki middle class earns half as much in a more expensive society & spends a lot, saves very little and still falls short when compared to Indian middle class.

Here, you can't deny that their middle class consumption.
Politicians, Celebrities and foreign expirates living in Pakistan can't make 6% of population.

They may not be richer but they at least spend more.
That's why they lag in most socio economic development indicators like EI, Literacy, HDI or social progress index.

 

[Akshay_Fenix]

Demonetisation fails to pull down IIP growth further, industrial production bounces back to 2.7% in January

New Delhi: Growth in industrial production rose to 2.7 percent in January due to good performance of mining and manufacturing sectors coupled with sharp increase in output of capital goods, as per data released by Central Statistics Office (CSO).

Factory output measured in terms of Index of Industrial Production (IIP) was (-)1.6 percent in January last year,

The index had contracted by 0.4 percent in December last year with consumer durables taking the worst hit, plummeting by over 10 percent due to cash crunch post demonetisation. The December decline had reflected deterioration in the manufacturing sector on account of cash crunch following the scrapping of the Rs 500/1000 notes on November 8, 2016.

The cumulative growth for the period April-January period of the current financial year over the corresponding period of the previous year stood at 0.6 percent, as per the data released by Central Statistics Office Friday.

The manufacturing sector, which accounts for over 75 percent of the index, grew by 2.3 percent in January against a contraction of of 2.9 percent in same month a year ago.

Mining sector output too rose by 5.3 percent in January compared to a growth of 1.5 percent a year ago.

Capital goods segment, which is a barometer of investment, jumped by 10.7 percent in January as against a contraction of 21.6 percent year ago.

Output of consumer durables segment - TVs, refrigerators and washing machines - grew by 2.9 percent during the month under review compared to a growth of 5.6 percent a year ago.

http://zeenews.india.com/economy/de...n-bounces-back-to-2-7-in-january_1985294.html

 

[abingdonboy]

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[sthf]

Here, you can't deny that their middle class consumption.

Off course I can. They severly lag in per capita consumption. Don't take my word for it, look it up.

They may not be richer but they at least spend more.

No they don't

That's why they lag in most socio economic development indicators like EI, Literacy, HDI or social progress index.

Govt. apathy, messed up culture & fauj are responsible for this.

 

[Indx TechStyle]

Off course I can. They severly lag in per capita consumption. Don't take my word for it, look it up.


No they don't

Cars don't represent everything, but many aspects.

Per capita consumption is of average, every country with per capita income less than India, lags behind us, I'm talking of a certain portion of population which consumes equal to or above a certain line.

 

[Superdefender]

SGX (Singapore) Nifty is hovering above 220 points now!! That means tomorrow Sensex will open with atleast 750 points up.

 

[Akshay_Fenix]

I didn't know what the connection was between Singapore Nifty and Indian Nifty, so this what 2 guys on quora said if anyone had the same question.

"It is a derivative of NIFTY index traded officially in singapore stock exchange. Not all the shares comprising of the Nifty are traded there. It is a competitive product for NIFTY FUTURES , the transactions of which are settled in singapore stock exchange.
Investors who are unable to access indian markets, but who want to take an exposure in Indian market, are finding it useful. Likewise, hedge funds and other funds who take exposure in Indian markets also find it useful to hedge their exposures there. Trading commences much earlier in Singapore ( since it is east of India) and traded for longer hours, professional investors find it useful for their hedging and trading requirements. The developments that take place and have a bearing on the indian markets get factored into SGX nifty, even when Indian markets remain closed, give a sense of what is to expect when trade resumes in Indian market. Arbitrage opportunities are also available.
The presence of SGX NIFTY also challenges indian policy makers in so many ways, like ease of doing business there, cost of transactions, integration of financial markets, sensitivities attached therein, and also issue of bypassing indian markets if we are lagging behind.
Hope I have covered reasonably"

"Example-if SGX Nifty is 20 point positive then Indian market may open in green and vise versa"

 

[Superdefender]

I didn't know what the connection was between Singapore Nifty and Indian Nifty, so this what 2 guys on quora said if anyone had the same question.

"It is a derivative of NIFTY index traded officially in singapore stock exchange. Not all the shares comprising of the Nifty are traded there. It is a competitive product for NIFTY FUTURES , the transactions of which are settled in singapore stock exchange.
Investors who are unable to access indian markets, but who want to take an exposure in Indian market, are finding it useful. Likewise, hedge funds and other funds who take exposure in Indian markets also find it useful to hedge their exposures there. Trading commences much earlier in Singapore ( since it is east of India) and traded for longer hours, professional investors find it useful for their hedging and trading requirements. The developments that take place and have a bearing on the indian markets get factored into SGX nifty, even when Indian markets remain closed, give a sense of what is to expect when trade resumes in Indian market. Arbitrage opportunities are also available.
The presence of SGX NIFTY also challenges indian policy makers in so many ways, like ease of doing business there, cost of transactions, integration of financial markets, sensitivities attached therein, and also issue of bypassing indian markets if we are lagging behind.
Hope I have covered reasonably"

"Example-if SGX Nifty is 20 point positive then Indian market may open in green and vise versa"

Yes, it is an early indicator for what to happen in Indian Stock market.

 

[Indx TechStyle]

Surat, Jaipur to be new metros by 2018 with Rs 800 billion household income

Ladies celebrate Shak in Surat. Surat is earmarked to become a metro soon.

MUMBAI: India will see the rise of two new metros – Jaipur and Surat – by 2018, with a household income of over Rs 800 billion by 2018, according to an EY report titled ‘India’s growth paradigm: How markets beyond metros have transformed’.

These cities are projected to record real GDP growth of 8.7% and 10.3% respectively from 2015-20, relative to metros’ 8.3%. As a result, both cities will cross the Rs 800 billion threshold within one to two years, with total consumption levels to reach 75%-80% of metros like Pune and Ahmedabad.

The report also identifies 42 new-wave markets, which are expected to grow at 8.9% as compared to the 8 metros that are expected to grow at 8.3% CAGR in the 2015-20 period.

Ashish Pherwani, Media and Entertainment Advisory Leader, EY India said, “Non-metro growth is out-stripping that of metros in India. There are clear cases of unmet demand in India’s top 50 cities in certain sectors. This provides a huge opportunity for various sectors to both widen and deepen marketing strategies, and effectively tap into one of the world’s largest earning populations.”

The report also notes the rise of 8 new half metros, with household income exceeding Rs 400 billion by 2020. It also highlights 13 new-wave cities that represent a high-growth opportunity, but are largely untapped, according to the report. These include Patna, Raipur, Warangal, Gwalior, Dehradun, Allahabad, Rajkot, Vishakhapatnam, Jodhpur, Vijaywada, Ranchi, Kota and Jabalpur.

Additionally, the top 23 untapped markets, as identified by the report, are all new-wave cities. These 23 markets represent 19% of metros’ household income-but only 12% of retail outlets 15% of telecom centres and 17% of malls, notes the report.

It further considers the potential of individual markets across each sector – FMCG, Retail,fashion and durables, Auto, Telecom and DTH, E-Commerce, Education, BFSI, and Real Estate.

Regarding the current top 8 Metro Cities, we've already discussed & calaculted GDP and given their current growth rate, well above India's national average, major Indian Metropolitans will be close to middle income economies,
https://qz.com/755971/by-2030-five-...ies-as-big-as-middle-incomes-countries-today/

Let's take example of Mumbai & New Delhi whose GDP (PPP) per capita's are in order of $15,000-$17,000s toady being equal to lower middle income economies.
Though, they have been growing in double digits, let's assume that their growth rate will be same as that of India which is for multiplying Indian Economy by 5-6 times and GDP (nominal) per capita by 4-5 times.
So, similar growth assumption for these cities (which is actually higher) projects a per capita income between $50,000 - $75,000 close to modern developed countries at that time.

Looks pretty good, we can have our own cities in league of developed countries.
I've more hopes with Navi Mumbai and the new tech city to release pressure from Bengaluru planned by Karnataka government.

One thing to note here, cities don't trap in middle income trap like Nations. Because they are supplied with labour from around immediately at low cost which ensures growth of megacity.

 

[Akshay_Fenix]

Analysts had expected Rupee to cross 70; it is now among best performers in Asia

Around this time last year analysts and currency experts were betting for Indian Rupee to be one of the worst performers globally. They expected Rupee to cross Rs 70 to a dollar by December 2016.

However, as it turns out, NSE Nifty hit its all-time high on Tuesday March 14, 2017 and Rupee reached its 11-month high against the dollar.

How did this happen?

On March 11, 2017, results of state elections were announced where Prime Minister Narendra Modi-led BJP won majority in India's largest state -- Uttar Pradesh. This is signficant in many ways as BJP, although, has a majority in the Lok Sabha, it is severely stunted in Rajya Sabha.

Analysts expect that with the win in UP and Uttarakhand, apart from good performance in Manipur and Goa, the party will finally see a majority in Rajya Sabha making it easier to pass key legislation.

Naturally, markets were buoyed by the election results and surged on Tuesday morning.

On Tuesday, rupee appreciated against dollar and was trading at 66.175 – a level which was last seen in April 2016.

Many analysts believed that because of various macro economic factor like Brexit, Donald Trump's becoming US President, US Fed rate hike and India's GDP growth will put pressure on Indian Rupee so much so that it will reach over 70-mark by December 2016.

A Deutsche Bank research report last year said that rupee is expected to see further depreciation in coming months and may reach 70-level by December 2016 and cross 72.50-mark by end of 2017.

The report cited US Fed monetary policy in 2017 and India GDP performance as main reason.

UK's Brexit vote did threw rupee to 67.914-mark against the dollar and demonetisation followed ty Trump's win weakened rupee further to 68.78-level.

In November 2016, rupee depreciated by 3.44%.

HDFC Bank in its report dated June 2016 had said, “An adverse global risk environment on the back ‘Brexit’ concerns in the near-term followed by the prospect of tighter US monetary policy and concerns about the Chinese economy is likely to restrain fund flows into the domestic markets.”

The bank expected rupee to be in the range of 68.50 to 69.50 to a dollar by end-2016, with dollar strengthening as investors tend to run for safe havens every time there is a scare in global financial markets.

Analysts said, “After demonetisation, there is expected to be a deceleration in growth and GDP is expected to come down due to which some money has already moved out and more is on the way. "

However, rupee's performance has been anything but as expected.

Care Rating, in its research report, said that rupee has been a relatively better performing currency against dollar.

From the month of October 2016 - January 2017, Indian rupee has only depreciated by 1.94% against dollar, whereas euro fell by 3.56%, Japanese yen by 10.54%, China Yuan by 2.39% and Australian dollar by 1.94%.

Care Ratings added, "While the near term forecast would be around Rs 67/$, the rupee may on balance move towards the 69 mark towards the end of FY18 with there being an incentive to let the rupee find its level to support exports at a time when they would be increasing."

http://www.zeebiz.com/india/news-an...it-is-now-among-best-performers-in-asia-13568

 

[Akshay_Fenix]

Maharashtra FM pegs GDP growth at 9.4 per cent

Mumbai: Delighted with the state’s economy growth of 9.4 per cent in 2016-17, finance minister Sudhir Mungantiwar on Friday attributed it to the policies implemented by his government in the last two years. “We are expecting growth in double digit next year. It is a proud moment that India and other states have constant economy growth while ours is more,” he said after tabling the economic survey of Maharashtra 2016-17 in the Assembly on Friday. The economy grew by 8.5 per cent in 2015-16.

On agriculture growth, Mr Mungantiwar expressed satisfaction after his government managed to put up figures in positive digits from the earlier negative growth. “The agriculture and allied sector growth is 12.5 per cent while it was negative 11.2 per cent two years back. The agriculture activities give employment to 2.60 crore people who would benefit from the growth,” the minister said.

As per the survey, the state expects revenue receipts of Rs 2.20 lakh crore against Rs 1.98 crore during last year. However, the debt is Rs 3.56 lakh crore higher than the last year. The finance minister justified the (debt amount saying that the state has not crossed the limit.

Interestingly, the total gross irrigated area was not mentioned in the economic survey except the incomplete figure of 24.47 lakh hectare, which comes under the water resources department. But it does not count irrigation done through other sources like wells. The minister said he would reveal the gross irrigation figure on Saturday while speaking on the budget to be presented. The gross irrigation figure had become controversial for the Congress-NCP regime in the past, after the coalition government in the 2012 economic survey had shown only 0.1 per cent increase in irrigation potential. This led to the NCP leaders handling the irrigation portfolio facing scam allegations.

Questioning the agriculture growth shown by the economic survey, former finance minister and NCP leader Jayant Patil said it is contradictory to the agriculture figures given by the government. “There is a reduction of 36 per cent in sugarcane, 10 per cent in cotton and also pulses and oil seeds. The government’s claim of 12.5 per cent agriculture growth is contradictory to what it has given in detailed figures on agriculture,” Mr Patil said.

BJP’s ally and MP of Swabhiman Shetkari Sanghatana, Raju Shetti, ridiculed the government for “manipulation” of numbers. “The agriculture is clubbed with allied activities, due to which the growth is higher. The rainfall was good last year due to which the kharif season went well. The rainfall also gave boost to dairy business and sugar industry and hence the growth is more. This was bound to happen because of rainfall and the government has not taken any efforts,” Mr Shetti said.

http://www.asianage.com/metros/mumbai/180317/fm-pegs-gdp-growth-at-94-per-cent.html


Fadnavis work is highly commendable and I can vouche for it, seen it first hand.

 

[ezsasa]

Arun Jaitley in LS says tax collection for next year is 19.5 lakh crore. Current year's is 17.5 lakh crore.

That would be about 11% increase.

Considering next fiscal is 3 quarters GST and 1 quarter current taxation, may be we can assume 2018 fiscal tax collection will cross 22 lakh crore tax collection. For context our 2017 total budget is for 20 lakh crore .

 

[Prashant12]

Forex reserves up $2.67 bn to $366.78 bn

Mumbai, Mar 24:
India’s foreign exchange reserves surged by whopping $2.671 billion to $366.781 billion for the week ended March 2017 on account of increase in foreign currency assets, the Reserve Bank said today.

In the previous week, the reserves had risen by $98.6 million to $364.109 billion.

Foreign currency assets (FCAs), a major component of the overall reserves, rose by $2.645 billion to $343.101 billion in the reporting week, the RBI said.

Expressed in US dollar terms, FCAs include the effects of appreciation/depreciation of non—US currencies, such as the euro, pound and the yen held in the reserves.

Gold reserves remained unchanged at $19.914 billion.

The special drawing rights with the International Monetary Fund was up by $10 million to $1.444 billion; India’s reserve position with the Fund, too, increased by $15.9 million to $2.320 billion, RBI said.

http://www.thehindubusinessline.com/economy/forex-reserves-up-267-bn-to-36678-bn/article9600591.ece

 

[Prashant12]

India's forex kitty up by $1.15 bn to $367.93 billion

India's forex kitty surged by USD 1.15 billion to USD 367.93 billion as of March 24 on the back of increase in the currency assets, the Reserve Bank said today.

The total reserves had shot up by USD 2.67 billion to USD 366.78 billion for the previous reporting week.

Foreign currency assets (FCAs), a major component of the overall reserves, rose by USD 1.133 billion to USD 344.235 billion in the reporting week, the RBI said today.

Expressed in US dollar terms, FCAs include the effects of appreciation/depreciation of non-US currencies, such as the euro, pound and the yen held in the reserves.

Gold reserves remained unchanged at USD 19.914 billion.

The special drawing rights with the International Monetary Fund were up by USD 6.7 million to USD 1.451 billion; India's reserve position with the Fund, too, increased by USD 10.8 million to USD 2.331 billion, RBI said.

http://www.dnaindia.com/money/report-india-s-forex-kitty-up-by-115-bn-to-36793-billion-2376769

 

[Indx TechStyle]

India’s retail market expected to double to $3.6 trillion (Germany's total GDP) by 2020: report
A Ficci-PwC report says the e-commerce market may also reach $125 billion in terms of gross merchandise value by 2020, growing at the rate of 31%.

Titled Shaping Consumer Trends, the report was released at Massmerize 2016, an annual convention on retail, packaged consumer goods and e-commerce. Photo: Bloomberg

New Delhi: Backed by robust economic growth and rising household incomes, consumer spending in India is expected to touch $3.6 trillion (about Rs.240 trillion) by 2020, increasing India’s share in global consumption to 5.8%—more than twice its current levels.

Not just that. By 2020, India’s retail sector is expected to double to $1.1-1.2 trillion from $630 billion in 2015 at a compound annual growth rate (CAGR) of 12%, said a joint report released by lobby group Ficci (Federation of Indian Chambers of Commerce and Industry) and consultancy PricewaterhouseCoopers.

Titled Shaping Consumer Trends, the report was released Thursday at Massmerize 2016— an annual convention on retail, packaged consumer goods and e-commerce.

The report’s projections indicate that the average household income in India will triple to $18,500 in 2020, from $6,400 in 2010—acting as a major driver in retail growth and leading to evolution of new consumer segments.

Customers are getting more sophisticated, driving firms to focus on premium products, the report said. “Increasing disposable income levels and a rising number of sophisticated consumers have given rise to consumers seeking ‘premium’ products,” it added.

According to IMRB’s Kantar World panel report published in 2013, nearly 50% of the total number of new launches in the personal care category has been in the premium segment.

The report highlights that the growth in the retail sector will be fuelled by both organized brick-and-mortar stores and e-commerce.

“India’s overall retail opportunity is substantial and a strong growth in e-commerce is expected due to a demographic dividend (young population, rising standards of living and upwardly mobile middle-class) and rising internet penetration,” stated the report, adding about 32.18 crore people, accounting for about 25.4% of total population, are using Internet in India, according to digital information and research company eMarketer.

The report also noted a shift in the focus of e-commerce players, towards their own private labels.

The report said that private labels account for 10-30% of the total revenues of the e-commerce companies.

In 2015, online grocery platform BigBasket (Supermarket Grocery Supplies Pvt Ltd), which sells fruit, vegetables, meat, pulses and spices under its own brand, generated 35% of its revenues from private labels.

According to the report, the e-commerce market is expected to reach $125 billion in terms of gross merchandise value (GMV) by 2020, growing at the rate of 31%. GMV is the total value of goods sold over a period of time, without accounting for discounts or sales returns.

The report said that the packaged consumer goods sector will cross the $100-billion mark by 2020, growing at a rate of 18%.

“Rapid macroeconomic, demographic and lifestyle shifts in the country clearly point towards exponential growth in the packaged goods industry. These shifts, bolstered by policy and regulatory changes have a strong potential of taking India towards its goal of becoming largest consumer market over the next decade,” it said.

According to the report, the maximum consumer spending is likely to occur in food, household, transport and communication segments.

Sanjiv Puri, chief operating officer at consumer goods company ITC Ltd and chairman of Ficci FMCG committee, agreed.

“With a lot of investment initiatives and GST (goods and services tax) coming in, there is a great opportunity in food processing,” he said.

FMCG is short for fast moving consumer goods.

Led by opportunities in the sector, ITC has invested nearly Rs.25,000 crore in about 65 projects—“a lot of which is in food processing,” Puri added.

The report said that consumer goods firms will now be focusing on online and social media channels to get into consumer’s mindshare due to the growing mobile internet revolution in India. It said that about 650 million people are expected to be online by 2020, out of which 250 million will be shopping online —spending more than $50 billion. Interestingly, at least $5 billion of this expenditure is expected to be on packaged consumer goods.

“India will be domestic consumption-driven growth story, and, on our part, at Walmart India, we are growing our cash and carry business in the country and plan to take our store count to 70 stores with a full omni-channel strategy. This is an exciting market for us,” said Krish Iyer, president and chief executive at Walmart India.

The report also offers insights on the recent changes in policies (100% FDI in trading of food products produced and/or manufactured in India, clarity on FDI in e-commerce, GST among others) that have led to an increase in investment opportunities.

Vasanth Kumar, executive director at apparel retail brand Max Retail, said there are opportunities in both FMCG and retail sectors. “With the GST coming in, productivity will go up, along with manufacturing and retailing. With that we can participate in the consumption and growth story in India,” Kumar said.

 

[Indx TechStyle]

New investments being made

Investments
Following are some major investments and developments in the Indian consumer market sector.

• US-based food company Cargill Inc, aims to double its branded consumer business in India by 2020, by doubling its retail reach to about 800,000 outlets.
• Yum!Brands, plans to open 100 Taco Bell outlets in India over the next five years, which makes Indian expansion a key part of its plan to triple its outlets outside US to 1,000.
• Hamleys has stated that India is one of the most important markets for Hamleys globally, and outlined plans of opening six more stores, taking its total store count in the country to 32 by the end of March 2017.
• Roche Bobois Group, outlined plans of opening new stores in cities like Hyderabad, Chennai, Pune, Kolkata and Ahmedabad, in order to make India one of its top five markets by 2021.
• Diageo, the world’s largest spirit maker, has announced opening of a new business service centre called Diageo Business Services India (DBSI) in Bengaluru, which aims to increase its workforce to 1,000 from 100 currently.
• Amway, India’s largest company in the Rs 7,500 crore (US$ 1.12 billion) direct-selling market, plans to invest Rs 400 crore (US$ 60 million) over the next five years to expand its product portfolio and open 50 ‘express’ stores in top 20 cities of India, in addition to strengthening its e-commerce website.
• Furlenco, an online furniture rental company, has raised US$ 30 million in series B round of funding led by LightBox Ventures, Axis Capital and a number of high net-worth individuals, which will be used to expand its geographical presence and product offerings in the next 12 months.
• Dyson, the UK-based manufacturer of innovative vacuum cleaners and air purifiers, plans to enter Indian consumer market by 2017 and invest GBP 154 million (US$ 190 million) over the next five years in areas of retail infrastructure, marketing, promotion and taxes to the government.
• Zefo, a Bengaluru-based refurbished goods marketplace, has raised Rs 40 crore (US$ 6 million) in a funding round led by Sequoia India, with participation from Beenext and Helion Venture Partners, which will be used to expand its team, invest in technology, and expand its presence in Mumbai and Delhi, which were recent additions.
• Adidas India Private Limited, outlined plans of opening around 30-40 big flagship stores across Delhi, Mumbai and Bengaluru, by 2020.
• Swiss watchmaker Montres Corum Sàrl, better known as Corum, has partnered with the luxury watch retailer Ethos Watch Boutiques to sell Corum watches in India, in order to strengthen its presence in India by rebuilding its distribution network and boosting revenues.
• AO Smith, a US based water technology and air purification solutions company, sees India as one of key markets and plans to grow at double-digit growth rate, having invested US$ 75 million so far.
• Crocs India Pvt Ltd, outlined plans of increasing its store count in India from 38 to 100 by the end of 2017, and increasing its focus on the casual footwear category to expand its consumer base and thereby boost its overall revenue.
• Panasonic Corporation plans to set up a new manufacturing plant for refrigerators in India with an investment of Rs 250 crore (US$ 37.5 million), and also invest around Rs 20 crore (US$ 3 million) on an assembly unit for lithium ion batteries at its existing facility in Jhajjar.
• Bosch & Siemens, the largest manufacturer of home appliances in Europe, plans to manufacture more products in India in the next three years, led by rise in demand for premium home and kitchen appliances.

Government Initiatives
The Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online retail of goods and services through the automatic route, thereby providing clarity on the existing businesses of e-commerce companies operating in India.

With the demand for skilled labour growing among Indian industries, the government plans to train 500 million people by 2022 and is also encouraging private players and entrepreneurs to invest in the venture. Many governments, corporate and educational organisations are working towards providing training and education to create a skilled workforce.

The Government of India has drafted a new Consumer Protection Bill with special emphasis on setting up an extensive mechanism to ensure simple, speedy, accessible, affordable and timely delivery of justice to consumers.

In the Union Budget 2017, the government has proposed to spend more on the rural side with an aim to double the farmer’s income in five years; as well as the cut in income tax rate targeting mainly the small tax payers, focus on affordable housing and infrastructure development will provide multiple growth drivers for the consumer market industry.

Union Cabinet reforms like implementation of the Goods and Services Tax (GST) and Seventh Pay Commission are expected to give a boost to consumer durable sector in India.






Consumer spending in India poised for explosive growth: report

By 2020, consumption will reach US$3.6 trillion, as new generation hits its prime spending years, according to a recent CII-BCG report

The Boston Consulting Group (BCG) and The Confederation of Indian Industry (CII) jointly released a study titled An In–Depth Analysis of How a Billion Plus People Consume. “This report examines the shape and size of consumption expenditure in India in detail, and its expected evolution over the next decade. While India’s robust consumption growth presents attractive opportunities for companies, its unique diversity and variety makes it challenging to capture these opportunities. Towards that end, this report presents a framework and approach on how to de–average the opportunity to better segment consumers and effectively understand their buying preferences," says Abheek Singhi, Leader of the Consumer & Retail Practices, BCG India and co-author of the report.



Buoyed rising household income, the coming of age of a new generation, and other socioeconomic forces, overall consumer spending in India is likely to expand 3.6 times from US$991bn in 2010 to US$3.6 trillion by 2020. The projected 14% growth rate is much faster than the anticipated annual global growth of 5.5% and even faster than the anticipated growth in emerging economies of 9%. By 2020, India will constitute 5.8% of global consumption more than double the 2.7% it now represents.



Despite the current global economic environment, India continues to march along a robust growth path. With the recent regulatory changes, increasing consumption levels and changing consumer preferences, the FMCG and retail sectors are standing at the point of inflexion," says Amitabh Mall, Partner & Director, BCG India.



India has a billion plus consumers spanning all income segments. The income pyramid is real but does only a partial job of explaining consumer attitude and behaviour. This report provides a definitive view of the income segmentation and more importantly uses other parameters of location, education and occupation to define the seven segments in India.

• Professional Affluent (2% of households)
• Traditional Affluent (4% of households)
• Urban Aspirers (8% of households)
• Rural Aspirers (6% of households)
• Large Town Next Billion (6% of households)
• Small Town and Rural Next Billion (24% of households)
• Strugglers (50% of households)

Food, housing & consumer durables and transport & communication are expected to be the Top 3 categories, accounting for 65% of consumption in 2020. The Professional Affluent are expected to dominate consumption in 2020, accounting for 26% of total consumption expenditure, up from 16% in 2010. By contrast, spending by struggler households will decline from 26% in 2010 to 11% in 2020.



"The roar of the Tiger is a fitting metaphor for consumer spending in India. Consumer spending in India will continue to roar, but the companies that try to capture it may not be so fortunate. India is a big and growing consumer market, but not an easy one. Understanding the size and shape of the prize and where it is hidden in the challenging fabric of India are the first steps to capturing it," concludes Abheek Singhi.


http://www.indiainfoline.com/articl...r-explosive-growth-report-113103007422_1.html

Consumer spending in India is expected to triple by 2020.



Indian consumer spending is projected to rise to $3.6 trillion in 2020, from $991 billion in 2010.

Source: Boston Consulting Group

http://www.businessinsider.in/16-Fa...ted-to-triple-by-2020-/slideshow/37120467.cms

Household final consumption expenditure, etc. (% of GDP)


For india it is 59 % approx
http://data.worldbank.org/indicator/NE.CON.PETC.ZS

 

[Kshatriya87]

Government exceeds FY17 tax collection target at Rs 17.10 lakh crore

Read more at:
http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst