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Week of 6.20.08

India's Thriving Middle Class

583 million
The forecasted size of India's middle class in 2025, swelling over ten times its current approximate size of 50 million.

291 million
The number of people who are expected to move from desperate poverty to a more sustainable life by 2025.

5.3%
How much average real household disposable income (income minus taxes, adjusted for inflation) is projected to grow each year to 2025, when it is expected to reach $6,977.

Accelerating Household Income in India
Average household disposable income
(thousands, Indian rupees, 2000)CAPTIONHERE
*Circled figures represent compound annual growth rates.
Source: McKinsey Global Institute

Fifth
Ranking of India's consumer market in the world by 2025 just behind the United States, Japan, China, and the United Kingdom. India is currently the 12th largest market.

$378 billion
Total value of India's food, beverages and tobacco market as forecasted in 2025.

Alcoholic beverages
The market in India that is expected to grow faster than the food, non-alcoholic beverages and tobacco markets. The market for alcoholic beverages is expected to grow by 9.6 percent annually to 2025. At the same time the consumption of tobacco is expected to decrease as people become more health conscious.

13.4%
Annual growth rate of the apparel sector by India's urban middle class to 2025, with ready-to-wear clothing gaining in popularity. This also includes increased demand for "office-wear" as more and more women enter the workforce.

5 million
The number of new telephone lines currently added every month, more than the total number of phone lines contained in all of India before 1990.

12 times
Amount communication consumption in India will grow from 2005 to 2025. Meanwhile, India's consumption of housing and utilities is expected to triple by 2025 to $145 billion.

$2,500
The price of a new car—expected to be the cheapest in the world—currently being produced by Tata Motors, an Indian automobile manufacturer. The automotive industry in India is set to experience explosive growth as disposable income increases.

10.5%
Annual growth rate of the consumer fuel market, which is expected to be worth $162.8 billion by 2025, as Indians travel longer distances, and use more cars and other modes of transport.

Medical tourism
Sector that will continue to become increasingly important as patients travel to India to secure relatively low-priced treatments with similar success rates compared to the West. While a cardiac procedure can cost from $40,000–$60,000 in the U.S., it costs only $3,000–$6,000 in India.

Source: McKinsey Global Institute: The 'Bird of Gold': The Rise of India's Consumer Market