We hold a positive outlook for the Indian consumer throughout our forecast period to ----. Our Asia Country Risk team forecasts sustained economic growth over the next five years, which will support household spending. ...Meanwhile, between ---- and ----, an additional --.-mn households will enter the USD-,------,--- income bracket. We estimate the USD-,--- level as the threshold at which households start to adopt more modern patterns of consumption, such as consuming more packaged food. Consumer tastes are slowly but steadily converging towards Western trends, as highlighted by growing demand for Western fast food chains. ...We estimate the USD-,--- level as the threshold at which households start to adopt more modern patterns of consumption, such as consuming more packaged food. Consumer tastes are slowly but steadily converging towards Western trends, as highlighted by growing demand for Western fast food chains.
...While the government is taking positive steps to improve the business environment, we believe that regulatory hurdles will continue to prevent consumer-oriented companies from fully take advantage of the country s full potential. The Indian government is stepping up efforts to attract investment in the manufacturing sector, through its Make in India campaign. ...We believe that regulatory hurdles will continue to hold back multinational investment, in particular in the alcoholic drinks and mass grocery retail sectors. Other obstacles include weak transport infrastructure, which makes it difficult to reach consumers, especially in rural areas, and burdensome administrative procedures. Recent food recalls, including the Maggi noodles scandal involving Nestle, also highlight high costs of operating in India. ...Other obstacles include weak transport infrastructure, which makes it difficult to reach consumers, especially in rural areas, and burdensome administrative procedures. Recent food recalls, including the Maggi noodles scandal involving Nestle, also highlight high costs of operating in India.
...Logistical problems, underdeveloped service networks and poor infrastructure hinder development in fresh food industries, such as dairy. The division between the urban rich and the rural poor is as great as ever, meaning food manufacturers do not have access to the entire population, or even the majority of it. ...
