Synopsis
A recent report highlights India's rapid transformation into a lucrative market for global consumer product companies. MNCs are seeing shareholder returns from their Indian affiliates significantly outpacing their global counterparts, emphasizing the urgent need for companies not yet in India to enter this promising market.Key Takeaways
- India is shedding its challenging market image.
- 60% of Indian affiliates are growing faster than their parents.
- Significant rise in working-age population expected.
- Digital adoption is reshaping market access.
- E-commerce growth is outpacing traditional trade.
New Delhi, April 24 (NationPress) India is rapidly transforming its image from a challenging emerging market to a lucrative opportunity for global consumer products companies, as highlighted in a new report released on Thursday.
For several prominent multinational corporations (MNCs), their Indian subsidiaries show total shareholder returns that are between two and six times that of their global counterparts.
The report by Bain & Company indicated that among those with an Indian revenue share of at least $100 million, 60 percent of the revenues from Indian affiliates are expanding at rates that are at least double compared to their parent companies.
“Businesses already putting resources into India are witnessing accelerated growth, enhanced shareholder returns, and opportunities to develop products that resonate globally,” remarked Ravi Swarup, head of Bain’s Consumer Products division in India.
MNCs that have yet to enter the Indian market should take immediate action — or they may forfeit a crucial growth driver and long-term strategic edge, he cautioned.
Over the past decade, India has emerged as the third-largest contributor to consumer product growth among emerging markets.
In the coming 5-6 years, it is projected to experience the most significant rise in the working-age population globally, along with the fastest income per capita growth among the top five emerging markets for consumer products, which also include China, Brazil, Mexico, and Russia.
While India has long been seen as a challenging market for MNCs, it has made substantial advancements in reducing barriers.
The rapid adoption of digital technologies and extensive smartphone and internet access have allowed companies to successfully connect with India's diverse demographics.
The report reveals that e-commerce and quick commerce have expanded 2–3 times faster in value than both traditional and modern trade channels, reducing the necessity for a broad traditional trade network to penetrate the market. Furthermore, digital payments are on the rise, with 45 percent of internet users utilizing them for transactions.
Nikhil Ojha, head of Bain’s Strategy practice in the Asia-Pacific area, stated, “What we observe is a market where both established players and newcomers can thrive, but only if they fundamentally adjust their strategies to be genuinely India-focused.”
