India: The Emerging Star

With over 1.2 billion people, India is the second most populous country on earth and currently the third largest economy in Asia behind China and Japan. It is quickly emerging as one of the most interesting and challenging destinations for global brands. While India is home to the third largest middle class on the planet, its income per capita at purchasing power parity is still ranked lowest compared to the other BRIC countries. However,India offers a huge demographic dividend. A quarter of the world’s young people live here. India’s society and markets are highly complex and diverse with 28 different states and 22 official languages. And there are uncounted variations of cuisine, attire, festivals, customs and consumer mindsets. India is a land of paradoxes, with remarkable high-technology, many world class companies like Tata, ArcelorMittal, Suzlon or Reliance and a leading position in business process outsourcing. It is also the country where more than two-thirds of households and factories need to deal with power cuts almost on a daily basis and where four out of five people live on less than $2 a day. The India chapter helps global marketers to understand the complex Indian society and how they can successfully target the different segments of the Globals, the Seekers, the Aspirers or the poorer citizens in rural India. After some years of difficulty, the new Prime Minister Narendra Modi has the mandate and the agenda to launch new round of major reforms. He wants to establish a system with “maximum governance and minimum government” and advertises for “Make in India”. If that works, India would become China’s toughest competitor for foreign investment and global market share.