Indians saving less, consuming more today

Saving for a rainy day is an American prerogative. However, they have too many rainy days to really save anything. Then came the Japanese and their miniaturisation in electronics.

The whole Nippon nation never spent anything for 50 years until manga comics and video games made their entry into Japanese society.

Indians had to save willy nilly to avoid tax when the government was the only employer before 1991. Where does India stand right now viz a viz the world? Indians are saving less and consuming more today.

Consumption in Indian society ranges from real estate to rubbers. Impulse purchases are the order of the day. This could be owing to the fact that Indians are yet to fully enjoy the fruits of a free market society whereas Europeans and Americans have had their fill a long time ago.

Indians still get excited when they buy a basic four wheeler or just a car for daily commuting. A lot of religious rituals follow after buying a two bedroom set in the realty market.

A raise elicits the purchase of a new suit or a new saree, depending on the inclination. This consumption is evident in the explosive growth of the telecom market in urban and rural markets. It is also evident in the maddening rise in prices for food and food processed items. Logistics and transportation are still relatively cheap in India. So is labour.

All this adds up to a beautiful stage where consumption is the key to growth and that is exactly what is happening in this country. Meanwhile, FMCG brands, academic degrees and once in a lifetime purchases continue to underperform to match the consumer’s demands in every respect. India will be a winner when industry meets demand half-way