Footballer David Beckham is unlikely to forget his 32nd birthday in a long time. Thanks to the generosity of his wife Victoria, Beckham spent around $40,000 (roughly Rs 16 lakh) mannequinning himself, buying a watch, suit, shoes and shirts.
Very few Indians would be able to match that. But even then data released by McKinsey Global Institute (MGI) says, if India maintains a real compounded annual growth of 7.3% between 2005 and 2025, it is likely to leapfrog into the world’s fifthlargest consumer market by 2025, up from today’s 12th position.
MGI’s study shows by 2025, over 2.3 crore Indians will be among the country’s wealthiest citizens. India’s growth will power income levels. The average real household disposable income will touch Rs 3,18,896 (in 2025) from Rs 1,13,744 in 2005—a CAGR of 5.3%.
As the Indian economy grows, the number of middleclass Indian, with a sizeable disposable income, will also grow The number is likely to shoot up from 5 crore to 58.3 crore. The survey also says that the spending pattern will slowly move away from basic necessities to discretionary items. By 2025, food, beverage and tobacco will continue to grab the major share of the spending, though dropping to 25% from 42%.
One of the fastest growing categories will be communications—up 6% from the present 2%. Transportation, personal products and services, and recreation are also likely to see sizeable growth.
