India to be world's fifth largest consumer market by 2025

The report,'Consumer 2020: Reading the signs', said India would emerge as the world's fifth largest consumer market by 2025 providing significant opportunities for consumer business companies.

"Even as growing purchasing power of Indians is already having a significant impact on the global consumer market, the growth in income is giving rise to increased demand for convenience of modern retailing. However, India needs to take measures that stimulate consumer spending," Deloitte India's Senior Director, Rajan Divekar, said.

The report further said that over the next decade there would be a rebalancing act in the global economy.

While countries like China are likely to shift away from export-oriented growth toward growth driven by domestic consumer spending, countries like India, could liberalise consumer finance and improve social safety net so as to encourage consumer spending and allowing the currency to appreciate.

Engaging consumers in adopting more sustainable behaviour in purchasing products and services will be replaced by connecting and socialising with a larger and enlightened group of consumers, the report added.

Growth in mobile communication will play a bigger role in consumer spending as they would have the power of information at their fingertips, enabling them to comparison-shop and purchase a wide range of goods and services anytime, anywhere.

Another major change, according to the report, would be the changing profile of the Indian retail sector both in terms of retail formats and gradual liberalisation of FDI in the multi-brand retail sector, which in turn is likely to attract significant investments in the back end supply and create employment opportunities.

There would also be a paradigm shift in the balance of power from consumer product companies to organised retailers, which will lead to a spurt in the number of private labels, the report said.