India to be fifth-largest consumer market by 2025- McKinsey

India’s consumer spending will quadruple by 2025, going ahead of Germany, as a youthful population earns more and saves less, according to McKinsey Global Institute study released this month.

The country’s consumer market was forecast to expand at an average annual rate of 7.3 per cent.

This surge would transform India from 12th to fifth-largest consumer market, behind the United States, Japan, China and Britain, displacing Germany.

This might explain why Wal-Mart and Britain’s Tesco are bullish to enter Rs 14,80,000 retail market.
McKinsey also noted a change in Indian attitudes towards consumption and savings driven by optimism about the future, predicting that the household savings rate would fall, leaving more money available for consumer spending.