According to BMI Research, a Fitch group company, India is among the top five consumer markets in Asia offering retailers the strongest consumer spending growth of an average of 6.1% over the next five years. The other four countries are China, Sri Lanka, Vietnam and Indonesia.
BMI Research was founded in 1984 Business Monitor International and later in 2014 was acquired by Fitch Group. The firm performs industry and financial market analysis in 24 industries and 200 global markets.
As per the report, the real consumer spending growth in 2017 will be 6.2%.
The factors responsible for increase in consumer spending in India include increase in access to consumer credit, lower inflation and favourable regulatory environment for foreign owned retailers. These factors will continue to boost India’s consumer sectors in the coming years.
India’s thriving e-commerce segment is expected to grow at double-digit rates in the forecast period up to 2021. The report has observed that due to the limitations of activities for overseas retailers, e-commerce has been dominated by local firms like Flipkart and Snapdeal. In India, Bricks-and-mortar retailers have also began to foray into the e-commerce segment supported by the high mobile penetration in the country.