It took 33 years for India to increase its per-capita annual income from $100 to $500, but only five years to double it from $500 to $1,000. It’s not surprising then, that Indian industry reported huge rises in sales in June: cars (34 per cent), refrigerators (32 per cent), air conditioners (50 per cent) and microwave ovens (40 per cent) as reported by Samiran Chakraborty, Head of India Research at Standard Chartered Bank, a British financial institution which recently raised capital in India.
Penetration levels of most consumer goods are still low – there are 12 cars per 1,000 people, while only 18 per cent of the population owns a refrigerator and 56 per cent owns a TV. India has plenty of spending to do to catch up with even China, where there are 128 cars per 1,000 people and 80 per cent of the population owns a TV.
This assures a long growth curve for most consumer products and the companies that produce and market them. Many western companies who have ignore India thus far should take a close look before it’s too late.
