Notwithstanding the current consumption slowdown, which has taken the shine away from a few segments, estimates say that India’s total consumption expenditure will grow by a factor of four, from $1.5 trillion in 2018 to $5.7-6 trillion by 2030. This impending explosion of opportunity is fascinating, not just for the size of the prize, but for the changing complexion of the consumer.
Objectives of the Summit
Recent developments and government initiatives
- The government is aiming to double the farmers’ income by 2022.
- Institutional credit to the agriculture sector is targeted at Rs 11 lakh crore for 2018-19, compared to Rs 10 lakh crore for 2017-18.
- 500,000 Wi-Fi hotspots will be set up by the government to provide internet connectivity to over 5 million rural citizens.
- Allocation for the National Rural Livelihood Mission has increased to Rs 5,750 crore for the year 2018-19.
- Budgeted expenditure on health, education and social protection for 2018-19 are Rs 1.38 lakh crore which is expected to increase by Rs 15,000 crore after additional allocations during the year.
- National Health Protection Scheme which will cover over 10 million poor families with a coverage of up to Rs 5 lakh will be launched. This will be the world’s largest government-funded health care programme.
- The Fast-Moving Consumer Goods (FMCG) sector in rural and semi-urban India is estimated to cross US$ 100 billion by 2025. Rural FMCG market accounts for 40 per cent of the total FMCG market in India, in terms of revenue.
- India’s unemployment rate has declined as a result of the Government’s increased focus towards rural jobs and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
- A report by McKinsey Global Institute forecasts the annual real income per household in rural India to rise to 3.6 per cent 2025, from 2.8 per cent in the last 20 years.