India poised to become third-largest consumer market: WEF

India is poised to become the third-largest consumer market behind only the US and China; and consumer spending in India is expected to grow from $ 1.5 trillion at present to nearly $ 6 trillion by 2030, a World Economic Forum report said on Wednesday.

According to World Economic Forum (WEF), with an annual GDP growth rate of 7.5 per cent, India is currently the world’s sixth-largest economy. By 2030, domestic private consumption, which accounts for 60 per cent of the country’s GDP, is expected to develop into a $ 6-trillion growth opportunity. “If realised, this would make India’s consumer market the third-largest in the world, behind the US and China,” the report said.

Commenting on the report, Zara Ingilizian, Head of Consumer Industries and Member of Executive Committee, World Economic Forum, said “as India continues its path as one of the world’s most dynamic consumption environments, private and public-sector leaders will have to take shared accountability to ensure such consumption is inclusive and responsible.

Notwithstanding the significant growth in consumption, critical societal challenges will need to be addressed, including skills development and employment of the future workforce, socio-economic inclusion of rural India, and creating a healthy and sustainable future for its citizens. “India’s top 40 cities will form a $ 1.5 trillion opportunity by 2030, many thousands of small urban towns will also drive an equally large spend in aggregate. In parallel, there will be an opportunity to unlock nearly $ 1.2 trillion of spend in developed rural areas by improving infrastructure and providing access to organised and online retail,” WEF noted.