Rising income levels mean that India’s huge population of around 1.2bn is becoming an increasingly important market for consumer goods, and this trend will continue during the forecast period.

Private consumption expenditure will rise from US$1trn in fiscal year 2013/14 (April-March) to US$2.4trn in 2018/19. The majority of people will continue to be preoccupied with meeting their basic daily needs rather than following the latest consumer trends.

However, the presence of a large number of middleclass households offers considerable potential for manu‑facturers and retailers. The rapid growth in personal incomes, combined with a more open domestic market, will make India an increasingly attractive market for foreign companies.

Nevertheless, India remains a predominantly agricultural society and is home to around 40% of the world’s poorest people. Moreover, even the middle classes have limited disposable incomes.

Demand for large and even medium-sized cars is still limited. Higher-quality products certainly appeal to the country’s consumers, but price remains the main determinant of the level of demand.

Unreliable and limited supplies of water and electricity have forced foreign manufacturers of white goods to rethink their approach—for example, by designing smaller and more efficient washing machines and refrigerators.

-The Economist