Masala Economy: How India's Appetite for Growth is Spicing Up World Markets

In a remarkable turn of events, India is on track to become the consumption hub of the world, surpassing existing major economies. India has now been reported to have consumption proportionate to 56% of its GDP, and is growing much faster than any other major economy in the world. It is predicted that India's consumption capacity will double within the next 10 years (by 2034), fueled by increasing numbers of nuclear families, and an ever-growing labor force. The savings potential of the country is equally extraordinary, projected to increase to $103 trillion by 2047. Tax cuts offered through the Union Budget are expected to further stimulate consumption and spending to spur overall national economic output (GDP) by as much as 1% in the near term. It is also reported that through much of its history, the pattern experienced by India's young people in spending based on increasing discretionary income has mirrored the patterns of consumption experienced in the past by US and Chinese economic development.

Source: NDTV