Why Bharat (India) Matters to the World

The buzz surrounding India is unmistakable. You may find yourself pondering, "What's the essence of this country?" or "Why has it captured the world's attention?”

As the world throws its spotlight on India, with leaders coining terms like “India Century”, the excitement and curiosity among forward-thinking entrepreneurs are palpable.

Drawing from my experiences speaking with startup communities around the world, collaborating with multinational companies considering India for their next big move, I aim to shed light on why Bharat (India) is a crucial piece of the puzzle for those looking to shape the future.

So, as we embark on this exposition, I invite you to partake in the ritual of sipping chai (here’s my personal recommendation- tranquility)

Whatever you say about India, the opposite is also true

First things first, before we even begin to understand India, let's get the basics clear.

India exists in DUALITY.

India has entered the world's top 5 economies, surpassing the United Kingdom, yet it ranks 140th in per capita GDP at $2,600! ????

This principle of DUALITY extends across all facets of Indian life.

Consider consumption.

About 120 million people, whom we refer to as India 1, spend on subscriptions like Netflix, invest in the stock market, and have domestic help—and this segment's spending is on the rise!

At the same time, India 3 (close to 1 billion people) is largely non-monetizable for the startup ecosystem.

Intriguingly, even with such contrasts, India 1 alone represents a market larger than that of the UK.

Thus, the lesson here is clear: when entering India, temper your expectations with an understanding of its inherent dualities.

India’s consumer base is massive, driving key economic growth

Now that our expectations are in check.

Let’s discuss the wild opportunities India presents.

India has 30-60 million online transactors

Read more on Mithun Madhusudan deck Decoding Bharat.

Fourth largest global spender on travel by 2030

According to the UN World Tourism Organization, India is one of the top three fastest growing outbound tourism markets.

With India 1 becoming richer and wanting to spend more on experiences, this segment is expected to spend more.

Learn more about Ritesh Agarwal 's thoughts on travel and India here

On a progressive note, India allows 100% FDI in tourism industry under the automatic route.

World’s largest mobile gaming market in terms of app downloads

India is the largest gaming market in the world, boasting a user base of 568 million gamers and over 9.5 billion gaming app downloads in 2023.

20% of these gamers are actually willing to open their wallets, the most popular categories being- casual or core games as compared to pay up front.

Predictions are betting on India becoming a whopping $7 billion market by 2025.

It's all thanks to a perfect convergence of top-notch smartphones, better internet everywhere, and a new wave of influencers who are changing how games are played and discovered.

India has produced 3 gaming unicorns: Game 24X7, Dream11 and Mobile Premier League

I found this piece by RISHABH BHARDWAJ quite exhaustive for understanding Indian gaming market.

India’s rich likes to live in luxury

Meet India’s ultra rich family- The Ambani Family

If you’re a social media frenzy, you must have seen pictures of top shots like Rihanna, Bill Gates , Mark Zuckerberg , Bob Iger, Ivanka Trump, all decked up for the pre-wedding celebrations.

The Ambanis splurged an astounding ￡120 million (approximately Rs 1259 crore) on the pre-wedding festivities of?Anant Ambani?and Radhika Merchant, as per Daily Mail.

This behavior is being replicated by India 1, which now has grown its appetite for premium products

Sales growth of premium brands are outperforming mass brands. Source: Indus Valley Report 2024

A good news for product builders: India’s affluent population is likely to hit 100 million by 2027 ???(according to Goldman Sachs)

More on India’s consumer trends later!

Government’s cozy cushion for startups (DPI)

The buzz around consumer market growth, private investments, and spending is loud and clear, yet the India Growth Story wouldn’t be complete without mentioning the government’s strategic initiatives.

The Indian government has doubled down on building a robust Digital Public Infrastructure (DPI) to ensure the seamless delivery of welfare schemes right to the doorstep, with the Aadhaar Card as its cornerstone.

This DPI infrastructure has expanded to:

• Identity: Aadhaar Card
• Payments: UPI, Aadhaar enabled payment service
• Data Exchange: DigiLocker
• Lending: Sahamati
• Digital Commerce: ONDC

Collectively, they pave the way for online, paperless, cashless, and privacy-minded digital access to a wide array of public and private services.

Startups, particularly in fintech, mobility, and e-commerce, have been quick to capitalize on these developments

So, when you land in India, don’t surprised by the QR code displayed at every storefront, even in the most remote villages!

Largest exporter of talent in the world

CEOs of all major Tech companies in the world come from India.

Sunder Pichai (Alphabet) , Satya Nadella (Microsoft), Shantanu Narayen (Abode), we even have an Indian origin Prime Minister of UK- Rishi Sunak.

Among all ethnic groups in the USA, the Indian community boasts the highest income, underscoring the magnanimous economic and soft power wielded by India's diaspora.

The diaspora has gained a lot for prominence in the past 10 years, as the government ramped up relation building visits to countries across the globe.

India's rapport with the UAE, home to a significant Indian population, is stronger than ever, highlighted by the signing of 8 pivotal deals, including a Bilateral Investment Treaty, long in the making since 2016.

India also topped the global remittance charts at $125 billion in 2023 (according to World Bank's Migration and Development brief)

Global giants are following talent to India

2740+ Global Capability Centres (GCCs) units launched in India in 2023 alone.

Here’s why:

• India boasts the world's largest youth population, over 600 million strong.
• 40%+ of engineering graduates globally come from India.
• 20,000 new digital leadership positions projected to be filled by Indians by 2030.
• Salaries for skilled tech professionals in India can be up to 70% lower compared to the US
• Major share in the semi-conductor talent pool

The services export industry has been steadily growing over the last several year. With remote work opportunities and innovative models like employer of records, global companies are onboarding employees for India for all sorts of roles!

India exporting culture, beyond bollywood (AAA+)

India’s culture can’t be understood with its vibrant social fabric alone.

This culture is a crucible where values of science, spirituality, and wellness meld together into what I've fondly termed AAA+

Ayurveda: Ayurveda product market has experienced significant growth due to rising demand?for natural and herbal remedies in local and international markets. India's Ayurveda product market is projected to reach USD 16.27 billion by FY28.

Asana: The world is moving towards holistic wellbeing by practicing Asanas. Beyond flexibility, practicing yoga asanas helps you balance energies. The yoga industry is estimated to make profits of $66.22 billion by 2027, a study by Allied Market Research Report. Annually the global yoga market is increasing at a rate of 9.6%.

Astrology: Humans are now keen to understand what ‘doesn’t meet the eye’. People are becoming increasing spiritual, and the need to understand the universe and themselves better is edging them to explore Astrology. Searches for "birth chart" and "astrology" reached a five-year high, according to Google Trends. The global astrology market is projected to reach $22.8 billion by 2031, growing at a CAGR of 5.7% from 2022 to 2031.

And why + (plus)?

Because it's about evolving into the finest versions of ourselves. It's a plus in every sense, adding value, depth, and insight to our lives.

As I journey deeper into understanding Bharat (India), my aim is to share insights that are not just observed but lived and felt.

Until we meet again, stay curious, stay inspired.