New Delhi, Nov 4 (IANS) According to a recent report, India’s consumer spending on goods is projected to reach $1.29 trillion in 2024, with an anticipated growth rate of 7.0 percent over the next five years. The country’s progress in the electronics sector has primarily utilized an assembly-to-component approach, leveraging tariffs and production-linked incentives to attract investments in the manufacturing of smartphones and other connected devices.
According to a recent forecast by S&P Global Market Intelligence, the vast sales potential in the Indian market has created strong reasons to invest in local manufacturing, highlighting the “in-market, for-market” benefits of such investments.
According to S&P Global Market Intelligence forecasts, India’s consumer spending on goods is projected to reach $1.29 trillion in Over the past five years, inflation-adjusted growth has been 4.8 percent and this is expected to rise to 7.0 percent in the coming five years.
Growth is especially pronounced in export sectors like apparel, which is projected to grow by 9.5% over the next five years, as well as in household equipment—including appliances and electronics—anticipated to increase by 8.8%, and transport equipment, expected to rise by 8.5% in the same period.
In addition to producing for local markets, contracted electronics manufacturers are also exporting products, especially smartphones, which has contributed to a 44 percent annual growth in telecom equipment exports from 2015 to 2024.
To effectively compete with government support for local manufacturing in developed economies and the use of rules of origin to protect their economic interests, emerging markets like Malaysia, Indonesia, and India have successfully attracted investment and increased exports by capitalizing on their distinctive advantages, according to the report.
India is projected to be the fastest-growing major economy over the next three years and is expected to become the third-largest economy globally by 2030. Its anticipated addition to JP Morgan’s Government Emerging Market Bond Index in 2024 may boost government funding and unlock significant resources in domestic capital markets.
