India’s consumer market is controlled by 2 % of its wealthy
reports Mehr News Agency India’s economy is highly dependent on consumers, but only 5 % of the country’s population, about 5 million, accounts for much of this consumption.
This class, called “ India One, accounts for 2 % of unnecessary costs, while the remaining 5 % is unable to increase their purchasing power.
Although India is the fifth largest consumer market in the world, per capita consumption in this country is less than China and even Indonesia, indicating deep economic inequality. While luxury goods such as expensive cars, luxury and smartphones have increased, the number of consumers in areas such as air travel and online food order has not changed much.
The report also mentions the increase in life in closed residential complexes and describes them as “centers of wealth accumulation”. According to the report, 5 % of the top 5 households in India live in these areas and have a huge impact on the country’s consumer market. If we consider this group as an independent economy, the per capita income India ranks 1st in the world, while India is ranked No. 2.
The study also compared the risky investment market in India with the US and China and has rapidly grown in urgent trade. Over the past three years, the total value of orders on the Quick Commerce platforms has been 2x and is projected to reach 5 million by 1 to 2 per month. But the low wage of delivering workers and reducing the sales of local stores shows that this growth may face challenges.
Although urgent trade is expected to expand in the future, the report warns that purchasing power in India has not increased, making it difficult to grow beyond the 5 % wealthy society. This can lead to intensifying policy -making discussions for urgent trade control, as its negative impact on traditional stores is more evident.
