Market overview India

The land of superlatives

With a population of some 1.25 billion people, India is the second largest nation in the world and may become the third-largest global power by 2020. The average population growth is about 1.2 percent per year. Due to an high birthrate the amount of the working population also increases in large measure, which results in very positive growth forecasts. A particularly remarkable feature is the enormous population density in the cities: 46 cities had more than 1 million inhabitants in 2011. More than 10 million people live in each of the three largest metropolises of Mumbai, Delhi and Kolkata.

 

Continuous Growth

Since 1991, numerous reforms have transformed the country into one of the fastest-growing economic powers. India emerged from the strained world economy as one of the winners due to its strong domestic market. Since 2003, India’s Gross Domestic Product is increasing steadily and has even more than tripled with a value of 2,049 billion U.S. dollars (2014). Recently the annual growth was about 7.4 % in the financial year 2014/15.

Indian retail trade

India has the fifth largest retail trade in the world. The tremendous growth of the Gross Domestic Product and the organised retail trade increases India’s consumer spending and offers attractive opportunities for international companies to enter the market. E-commerce will continue to gain in importance. According to studies internet retailing is increasing steadily. In 2009 turnover was 2.5 billion U.S. dollars and increased to 16 billion U.S. dollars (2013). Online trading is expected to attain a value of more than 56 billion U.S. dollar by the year 2023.

Import and export

The figures for imports of consumer goods almost increased fivefold from 2004 to 2012, which proves the growing demand for international products. There has also been strong growth in exports, from US$ 220.4 billion in 2010 to US$ 317.5 billion in 2014. These strong international relations result in an increasing number of direct investments on the Indian subcontinent.

Increasing purchasing power

Indian families focus on children. About 20 per cent of the global population under 25 years of age lives in India. Children under 14 years account for 28.9 per cent of the total population. A slight decline in the average number of children per family and rising income mean that Indian families have more money available for goods for the more wealthy. Appreciable growth of the middle class and the rich and very rich increases the sales opportunities for high-priced articles.

Learn more about the Indian toy market...