MGI describes its research approach, provides background on the Indian market, and discusses how that context informs the report's base-case scenario for future Indian growth—information which, in turn, drives the research projections of incomes and consumption.
Chapter 2: The quadrupling of Indian consumption, 2006–2025
The combination of more income per person, more people, and moderating savings will fuel a quadrupling of India's consumer market over the next two decades. This chapter offers a picture of the future development of the Indian consumer market in total.
Chapter 3: The future development of the urban market
In analyzing the trajectory of India's urban market, MGI forecasts urban consumption both to accelerate and to continue to grow faster than the overall economy, and estimates compound annual growth of 9.4 percent over the next 20 years.
Chapter 4: The future development of the rural market
An analysis of rural consumption shows that while its growth will continue to lag behind growth in wealthier urban areas, it will nonetheless accelerate from a compound annual rate of 3.9 percent during the past two decades to 5.1 percent during the next two.
MGI uses an econometric model to estimate the future evolution of Indian consumption by income bracket across nine high-level and 30 more detailed product and service categories that cover 100 percent of Indian household consumption. Overall, Indian consumption patterns are already evolving rapidly and will continue to do so.
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