India Facts

Some interesting facts revealed in the latest issue (15 Years After) of Business Today magazine. Do grab a copy for your own reference at the earliest.

• According to a Deutsche Bank Report, India is likely to be the world’s third richest economy by 2020, with a GDP of Rs. 64 lakh crore
• Today, 1.6 million people earn more than $100,000 a year; the number will grow to 3 million by 2010
• 544 million Indians will likely join the consuming middle class between 2006 and 2015; current size estimated 250 – 300 million
• Total consumption estimated around $550 billion in 2006 as against $300-340 billion in 2002
• Market for luxury products in India is estimated at $444 million today; it was almost non-existent a decade ago
• FMCG industry will grow to Rs. 1,06,300 crore by 2012 compared to Rs. 60,000 crore now
  
• 21 million Indians have a home loan today compared with only 2.6 million 10 years ago; this is likely to double in the next 3 years
  
• Total number of credit card issued is 13 million (just 2% penetration) and 32 million users of debit card, while average monthly spend on cards is as low as Rs. 1500
• Television penetration in 2005 stood at 50% of the total population of which 60% are C&S household
• Refrigerator penetration is 12 per cent

Where is all this taking us? Definitely not Mainland China. Pun unintended, our culture is slowly sinking into consumerism and the middle class is indeed growing in size. Says, Mr. Rajeev Bakshi, "The growth base is still very small, 60 million people who can actually afford goods and services will not be the growth driver. When this number becomes 130 million over a period of three to five years and attains a critical mass, thats when the FMCG sector will start booming." To add on that Mr. Gurucharan Das says, "If the economy grows over 7% annually in the foreseeable future and the population increases by 1.5 percent and literacy rate keeps rising, then half of India will turn middle class between 2020 and 2040."

After going through all this, I am left with several questions on my mind. Things are growing faster, things are changing even faster, what role will advertising play on these newly enlightened-uplifted-new-age consumers? Will advertising re-incarnate itself as an information provider or become a true facilitator to the buying/consumption process? Will advertising become more scientific or more artistic?

If you have answers to this, do write back.