Seizing India’s moment

India is an iconic country that inspires millions of people, myself included, with its spirituality, natural wonders, centuries-old history, art, and flavorsome cuisine. Having fast become known for its rich culture and diversity, today India continues to make headlines as it cements its position as a global economic force. 

India has become a core generator of economic development, accounting for 15 percent of the world’s economic growth. Despite downward revisions for its growth projections, the economy has grown at an average annual rate of 7.5 percent in the last five years thanks to the ongoing reform process, steady gains in household consumption, a surge in Foreign Direct Investment inflows. A hub of opportunity, the Indian economy is described as ‘an elephant starting to run’ by the IMF and surpassed the UK to be the world's fifth largest economy last year. By 2030, the country is projected to be the world’s thirds largest.

As the Indian economy continues to grow, so does the population which brings many challenges and opportunities. With a population of over 1.3 billion, India will overtake China soon and is set to become the world’s largest labor force. What’s more, India has a young and vibrant population, as 77 percent of Indians will be under the age of 44 in 2030. 

The rapid population growth creates a huge market for businesses, increases consumption but at the same time places immense pressure on the environment these pressures in turn trigger climate related issues. India has a unique responsibility to find ways to mitigate these environmental issues. 

With the country’s students boasting academic excellence, particularly in STEM or specifically sciences, India is creating a vast talent pool to support labor forces across the country. By 2030, the country’s labor force will be larger than those of the United States and the Euro Area combined. India-born engineers, executives and scientists make breakthroughs and hold significant positions in the world of technology and media. No wonder they are running and dominating the world’s largest technology giants in Silicon Valley.

Middle class expanding exponentially

The Indian economy presents a bright future for companies that are looking for sustainable growth. The rise of the middle class is reshaping consumption patterns and by 2030, 80 percent of the population will be considered middle-class, up from 50 percent as of today. As millions of people across the country shift out of poverty, middle-income and high-income households will drive nearly $4 trillion of incremental consumption spend by 2030. 

This growth will boost the consumer appliances industry, which is already among the fastest-growing global market, according to Euromonitor. The majority of the demand comes from urban areas thanks to higher disposable incomes, greater availability of products and higher awareness amongst consumers. Bain & Company and the World Economic Forum forecasts that, by 2030 upper-middle-income and high-income entrants will drive a 15-20 percent increase in the ownership of durables such as washing machines, refrigerators, and TVs.

India has the largest rural population with nearly 900 million people. Around 40 percent of India’s population will be living in urban areas by 2025 and city dwellers will account for more than 60 percent of consumption. This brings resource efficiency to the forefront of demand, with many people seeking products that are water, energy and time-efficient. This offers a major opportunity for companies like us to share our innovative and sustainable technologies with the Indian consumer.

A hunt for value

Bound by the world's mightiest mountains, India has overcome some key challenges to attract foreign direct investment and improve its ranking in doing business. The country was among the top 10 recipients of FDI in 2019 with an estimated $49 billion of FDI, a 16% increase from the $42 billion recorded in 2018. Structural reforms in recent years also helped India move to 63rd position in World Bank Global Ease of Doing Business Ranking. 

Every company seeks to gain a foothold and grow in the market, but this requires a competitive edge. Businesses are under pressure to offer the best products with an affordable price tag, as consumers are increasingly hunting for value for money. Success relies heavily on this winning combination, with rapidly changing market dynamics and consumer behaviors being the key factors to watch. In a new era, where green business practices are key to differentiate, India can achieve a competitive advantage against its peers by following a sustainable growth path and endorsing this modern gold rush.

As a leading company in the home appliances industry, we have also set our sights on India. Global expansion, particularly across Asia, is fundamental to our development strategy and we believe that attaining long-term success is only possible by understanding the complex structure of the market, building long-lasting partnerships, and applying winning business models.

As such, in 2017 we announced the start of our joint venture with Voltas, one of India’s most highly regarded brands, leader in the air conditioning market and part of India’s leading conglomerate, the Tata Group. In partnership, we launched unique products that are environmentally friendly in terms of energy and water consumption.

Together we invested in a dedicated factory to show our commitment to the flagship ‘Make in India’ initiative, which aims to attract investment and transform the country into a manufacturing hub. We are excited to be a part of this initiative with our newly-inaugurated refrigerator plant in Gujarat, which was built according to the highest technological and environmental standards.

We believe that our global manufacturing and innovation capabilities will foster economic growth, create value and employment, while opening new opportunities in India. With our experience and knowledge in designing affordable and resource efficient products, our goal is to democratize technology for the masses and exceed customer expectations.

As Mahatma Gandhi said: “The future depends on what we do in the present.”

We have to act responsibly today to make sure that we have a future. We will act responsibly to preserve the environment in India, as we do in all geographies we operate in.   

This is the perfect time to seize India’s moment. In this exciting era, we are thrilled to have a strong partnership and we look forward to pursuing our growth aspirations.