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India
Statista Country Report
April 2019
Statista Country Reports
Dear Reader,
Find out more about India in our report focusing on the general
economy, trade, investment, society, consumers, infrastructure, and
politics.
The Statista Country Report provides a comprehensive overview of the Tytti Mälkki Volker Staffa
economy of India, which can be relevant for manufacturing, foreign
direct investment, and the importing and exporting business. Gain
insight into the major trends in India in order to assess the risks and
opportunities relevant for international business.
2
Agenda
3
INTRODUCTION
▪ Overview
▪ Executive summary
4
India
Overview (1/3)
General information:
1: Constant US$, see glossary for definition of current and constant US$
Source: CIA World Factbook 2018, United Nations, Department of Economic and Social Affairs, Population Division 2017, World Bank World
5 Development Indicators 2018, International Monetary Fund, World Economic Outlook Database 2018, Columbia University, Statista 2018
With 28.5 million in population, New Delhi is the
largest urban area
Overview (2/3)
Muslim Dravidian
2.3% 14.2%
2.0% Christian
1.7%
Sikh
Other and unspecified 3.0% 25.0% 72.0%
79.8%
20.0
14.7
23.8% 4.4% 52.6% 19.2% 11.4 10.5 9.5
6 Source: CIA World Factbook 2018, World Bank World Development Indicators 2018
India sports five major airports – flight time from the
U.S. ca. 14-18 hours
Overview (3/3)
Major airports in India1 Flight times from regional hubs in hours (no. of stops)2
Indira Gandhi International Airport, New Delhi Region Hub DEL BOM BLR MAA CCU
▪ Airport code: DEL North New York City, 13:55 14:35 18:00 18:10 18:15
▪ Distance to city center: 21 km America the U.S. (JFK) (0) (0) (1) (1) (1)
Latin
Chhatrapati Shivaji International Airport, Mumbai São Paulo, 21:15 21:50 22:40 22:30 22:20
America &
Brazil (GRU) (1) (1) (1) (1) (1)
▪ Airport code: BOM Caribbean
Europe &
▪ Distance to city center: 7 km London, the 8:20 9:10 9:55 10:00 13:20
Central
UK (LHR) (0) (0) (0) (0) (1)
Kempegowda International Airport, Bengaluru Asia
Hong Kong,
East Asia & 5:40 6:15 5:40 5:20 6:15
▪ Airport code: BLR Hong Kong
Pacific (0) (0) (0) (0) (0)
(HKG)
▪ Distance to city center: 34 km
Delhi, India 0:00 2:05 2:40 2:40 2:05
Chennai International Airport, Chennai South Asia
(DEL) (0) (0) (0) (0) (0)
▪ Airport code: MAA Middle
East & Dubai, the 3:10 3:00 3:50 3:55 4:30
▪ Distance to city center: 20 km
North UAE (DXB) (0) (0) (0) (0) (0)
Netaji Subhash Chandra Bose International Airport, Kolkata Africa
Sub- Johannesburg,
▪ Airport code: CCU 12:55 11:00 15:00 15:15 15:05
Saharan South Africa
(1) (1) (2) (1) (1)
Africa (JNB)
▪ Distance to city center: 14 km
1: Busiest airports by number of Passengers-Airports Authority of India 2: Most direct and fastest routes are considered. Flight times for 17th
July 2019-Google Flights
Note: Distances to city center are based on the shortest route calculated by Google Maps and rounded to full kilometers
7 Source: Google Flights, Google Maps
India is a lower middle income country with a
population growth of 1.1% in 2018
Executive summary (1/2)
▪ India had a fiscal deficit of -6.6% of GDP in 2017 ▪ With US208.3 billion, manufacturers accounted for 70% of the total
merchandise export value in 2017
▪ Household consumption expenditure in India was lower than in
overall South Asia in 2017 ▪ India registered a lower export trade flow than Bangladesh in 2017
▪ Unemployment rate was 3.5% in 2017 and has been decreasing since ▪ With US$27.4 billion, travel services accounted for 15% of total
2010 services export in 2017
▪ It takes 29.8 days to start a business in India compared to 5.6 days in ▪ Inward FDI amounted to $39.9 billion in 2017
the U.S.
8
In global comparison, India has a medium level of
human development
Executive summary (2/2)
▪ The retail market in India is maturing ▪ Regulatory quality in India is on a middle level
▪ Households in India spend their biggest share of their income on food ▪ High risks from political instability and threat of violence or terrorism
and non-alcoholic beverages
9
Things you didn‘t know about Indian business culture
Doing business (1/2)
▪ Indians prefer an indirect communication style while conducting ▪ Historically, Indians have not been structured or organised while
business, with much importance being given to small talk. This is planning meetings. This is changing at a fast pace with the
especially the case when dealing with the public sector. However, the modernization of the country’s business environment.
advent of multinational companies is slowly changing the culture to a
more direct style of communicating.
▪ Even though Hindi is the official language it is not used much in the
modern business environment, with English being preferred.
Conflict management
▪ Hierarchy is considered very important in conducting business,
especially in the public sector.
▪ Conflicts are usually solved through mutual discussions , however it is
▪ Bargaining is an integral part of Indian culture. not uncommon to see the concerned parties take the legal route in
case the matter remains unsolved.
Note: Please refer to the appendix for further information on the methodology of data collection
10 Source: Statista 2019
Things you didn‘t know about Indian business culture
Doing business (2/2)
▪ Networking is considered paramount to achieving business success, ▪ Even though the Indian business environment has made much
especially when dealing with the public sector. progress in terms of gender equality, men still dominate the upper
ranks in both business and politics.
▪ The scenario is however witnessing rapid change as women
empowerment gains momentum throughout the country.
Note: Please refer to the appendix for further information on the methodology of data collection
11 Source: Statista 2019
ECONOMY
• Economic conditions
• Public finances
• Labor force
• Business environment
12
Real GDP is forecast to increase by 7.6% p.a. from
2018 to 2023
Economic conditions: real GDP (1/3)
4,213.5
+7.6%3
3,912.3
3,632.6
3,372.9
3,131.7
2,915.9
+7.6%3 2,717.6
2,546.9
2,378.1
2,197.8
2,046.4
1,823.1 1,923.3
1,702.7
1,527.3
1,397.5
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
1: See glossary for definitions 2: Constant US$, see glossary for definition of current and constant US$ 3: CAGR: Compound Annual Growth
Rate/average growth rate per year
13 Source: International Monetary Fund, World Economic Outlook Database 2018, Statista 2018
Real GDP growth at 7.3% was faster and real GDP per
capita at US$2,185 was higher than average in 2018
Economic conditions: real GDP (2/3)
Real GDP growth, real GDP and real GDP per capita1 in US$2 in South Asia in 2018
Real GDP growth 2017-18 in % Regional average Real GDP: US$500 billion
8
Bangladesh
India
7
Nepal Pakistan
6 Bhutan
South Asia
5
Afghanistan
2
0 500 1,000 1,500 2,000 2,500
1: See glossary for definitions 2: Constant US$, see glossary for definition of current and constant US$
Note: Regional average value refers to the 150 countries covered by the Statista Country Reports
14 Source: International Monetary Fund, World Economic Outlook Database 2018, Statista 2018
India has the 98th highest real GDP per capita
Economic conditions: real GDP (3/3)
1: See glossary for definitions 2: Constant US$, see glossary for definition of current and constant US$ 3: Democratic Republic of the Congo
Note: data compared only for the 150 countries from the Statista Country Reports publication series. No data available for following counties:
Cuba, North Korea, Somalia and Syria
15 Source: International Monetary Fund, World Economic Outlook Database 2018, Statista 2018
Services accounted for 48.9% of GDP in 2017
Economic conditions: value added by sector
26.2%
30.2% 27.7%
80.0%
75.0%
70.0% 48.9%
45.4% 47.8%
10.0%
9.5% 9.5% 9.4%
9.1%
8.5%
7.8% 8.0% 8.0%
7.5%
6.5% 6.8%
6.2% 6.3% 6.3% 6.3% 6.3% 6.3% 6.3% 6.3% 6.3% 6.3%
5.8%
4.8% 4.9% 4.7% 4.9% 4.6%
4.5% 4.3% 4.1% 4.0%
3.6%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
When interest rates are low, individuals and businesses tend to take more loans. Each bank loan increases the money supply in a fractional reserve
banking system. According to the quantity theory of money, a growing money supply increases inflation. Thus, a lower interest rate tends to result in a
higher inflation. High interest rates tend to lower inflation. Consumers tend to save when interest rates are higher, as returns from savings are higher.
More money put aside to savings means less disposable income. This results in slower economy and decreased inflation.
Forecasts for interest rates are based on latest historical value in a no-change model3. Inflation levels are estimated after 2018 by the IMF.
1: Percent change in annual average consumer prices 2: Monetary policy-related interest rate, percent per annum 3: As central bank interest
rate changes are highly dependent on macro economic developments we assume a constant development
Source: International Monetary Fund, World Economic Outlook Database 2018, International Monetary Fund International Financial Statistics
17 Database 2018
India had a fiscal deficit of -6.6% of GDP in 2017
Public finance: expenditure and revenue (1/2)
12.6%
11.6%
10.7%
30.6% 29.2%
19.0% 17.6%
11.4% 11.0%
-22.0% -21.8%
Household General government Gross capital Changes in Exports of goods Imports of goods Other
consumption final consumption formation3 inventories4 and services and services
expenditure1 expenditure2
1: Expenditure by resident households and non-profit institutions serving households on individual consumption goods and services
2: Expenditure on individual consumption goods and services and collective consumption services 3: Including acquisitions less disposals of
valuables 4: Value of entries into inventories less value of withdrawals and value of any recurrent losses of goods held in inventories
19 Source: United Nations National Accounts Estimates of Main Aggregates 2018
Debt-to-GDP ratio in India expected to decrease over
the observed time period
Public finances: debt
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
+2.6%
2.4%
2.3%
2.2%
2.0% 2.0% 2.1%
1.9% 1.9%
1.9%
1.7%
1.7%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
125,719 121,779 117,831 116,354 114,898 117,759 120,665 123,545 126,619 127,670 128,633 129,567 130,493 131,222 131,981 132,723
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
70
60 14.4%
Lower
50
secondary1
40
30
20 15.1%
27.2%
10 Primary
Upper
0 secondary2
2022
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
1: Generally prepares students for a direct entry into working life or for upper secondary education 2: Corresponds to the final stage of
secondary education and prepares the students for a working life or tertiary education
3: Includes programs that serve to broaden the knowledge of students who have already gained an upper secondary education
23 Source: ILO Employment by sector 2018, Wittgenstein Centre for Demography and Global Human Capital 2018
Unemployment rate was 3.5% in 2017 and has been
decreasing since 2010
Labor force: unemployment
2010 2011 2012 2013 2014 2015 2016 2017 2015 2016 2017
Business administration
Time needed Time needed Time needed to fulfill Time needed to resolve
to start a business1 to register property tax requirements insolvency2
The U.S. 5.6 days 15.2 days 175 hours 1.0 years
Delivery
1: Number of calendar days needed to complete the procedures to legally operate a business 2: Number of years from the filing for insolvency
in court until the resolution of distressed assets 3: Time necessary to comply with all the procedures required to export/import goods in
calendar days 4: Includes e.g. speed, simplicity, and predictability of customs clearance (5 = high efficiency, 1 = low efficiency)
25 Source: World Bank World Development Indicators 2018
India takes 42nd place in the Made-In-Country-Index
Business environment: Made-In-Country Index (1/2)
8. Japan 81
Sustainability Uniqueness
8. France 81
8. the U.S. 81
Excellent
… … … Authenticity
design
42. India 36
Advanced
technology
Reading support: India takes 42nd place with a Made-In-Country Index score of 36 Reading support: This chart depicts respondents' answers to the question “Which
attributes do you associate with products from …?”. For instance, 7% of respondents
associate “high quality” with products from India
Note: The Made-In-Country Index is an index for the reputation of products from various countries all over the world
26 Source: Statista Made-In-Country Index 2017
Indian products are held in high regard even by Arab
countries
Business environment: Made-In-Country Index (2/2)
Colombia 23
France 26
Sweden 27
Reading support: India is ranked highest by India itself (rank: 1). Its lowest ranking comes from Pakistan (rank: 48)
Note: The Made-In-Country Index is an index for the reputation of products from various countries all over the world
27 Source: Statista Made-In-Country Index 2017
India takes 58th place in competitiveness
Business environment: competitiveness
Percentile rankings in Global Competitiveness 4.0 Index in 2018 ▪ India ranked 58th out of 140 countries in
national competitiveness
0%-20% 21%-40% 41%-60% 61%-80% 81%-100%
▪ Percentile rank indicates the country’s place
in the ranking, with 0 corresponding to
lowest rank, and 100 to highest rank
New businesses registered per 1,000 inhabitants1 Ease of doing business score² in 2018
India South Asia Starting a business Enforcing contracts Getting credit
0.4 85.4
81.0 80.0
0.3
0.2 47.5
41.2 43.4
0.1
0.1
0.1
1: Number of new limited liability corporations registered in the calendar year per 1,000 people between 15-64 years
2: 0 = lowest performance, 100 = best performance
Note: Regional averages for new businesses based on available data for countries covered by Statista Country Reports
29 Source: World Bank Enterprise Surveys 2018, World Bank Doing Business 2018
TRADE &
INVESTMENT
▪ Merchandise trade
▪ Commercial services
▪ Investments
30
India registered a lower export trade flow than
Bangladesh in 2017
Merchandise trade: global comparison (1/2)
Export trade flows of total merchandise1 Import trade flows of total merchandise1
India South Asia Bangladesh United States
2010 = 100% 2010 = 100%
190 190
185 185
180 180
175 175
170 170
165 165
160 160
155 155
150 150
145 145
140 140
135 135
130 130
125 125
120 120
115 115
110 110
105 105
100 100
95 95
90 90
2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017
Shares in merchandise trade export value in 2017 Shares in merchandise trade import value in 2017
India South Asia Bangladesh United States
93% 78%
72% 73%
70% 59%
53% 53%
34%
31% 30%
16%
14% 13% 13% 11% 11% 11%
12% 11%
7% 7%
3%
1%
Manufacturers Fuels & Mining Agricultural products Manufacturers Fuels & Mining Agricultural products
Note: Regional average value refers to the 150 countries covered by the Statista Country Reports
32 Source: WTO International Trade by Commodity and Commercial Services 2018
With US208.3 billion, manufacturers accounted for
70% of the total merchandise export value in 2017
Merchandise trade: trade flows
Merchandise export trade flows in billion US$1 Merchandise import trade flows in billion US$1
Manufacturers Fuels & Mining Agricultural products Other
+4.1%² +3.5%²
3.6
6.9
15.8 43.6 2.9 65.4
7.7 44.7 48.6 45.2 28.0
39.5 67.5
34.5 41.9 7.9 25.7 24.4 27.3 33.3
5.4 22.6
73.6 35.0 33.5 48.0
75.2 48.5 38.1
10.5 68.4 47.4 27.7
70.0 36.4
23.1 40.8 29.0 150.9
17.9 183.0 210.3 211.4 204.2
54.7 129.9
108.1
127.6
201.9 208.3
184.3 177.2 188.0 183.8 188.8
234.9
138.0 191.5 188.4 186.2 187.2 186.0
181.0
157.4
2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017
1: Current US$, see glossary for differences between current and constant US$ 2: CAGR: Compound Annual Growth Rate / average growth rate
per year
33 Source: WTO International Trade by Commodity and Commercial Services 2018
India registered a lower export trade flow than
Bangladesh in 2017
Commercial services: global comparison (1/2)
Export trade flows of total commercial services1 Import trade flows of total commercial services1
India South Asia Bangladesh United States
2010 = 100% 2010 = 100%
185 220
180
210
175
170 200
165 190
160
155 180
150 170
145
140 160
135 150
130
125 140
120 130
115
110 120
105 110
100
100
95
90 90
2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017
Shares in commercial services export value in 2017 Shares in commercial services import value in 2017
India South Asia1 Bangladesh United States
27% 72%
22%
11%
9% 10% 26%
20%
12% 12%
4% 3%
7%
0% 0% 0% 0% 0% 2%
Goods-related services Transport Travel Goods-related services Transport Travel
Note: Regional average value refers to the 150 countries covered by the Statista Country Reports
35 Source: WTO International Trade by Commodity and Commercial Services 2018
With US$27.4 billion, travel services accounted for
15% of total services export in 2017
Commercial services: trade flows
Commercial services export trade flows in billion US$1 Commercial services import trade flows in billion US$1
Travel Transport Goods-related services Other
+6.7%² +4.3%²
77.3
1: Current US$, see glossary for differences between current and constant US$ 2: CAGR: Compound Annual Growth Rate / average growth rate
per year
36 Source: WTO International Trade by Commodity and Commercial Services 2018
With US$275.4 billion, the United States registered
the highest inward FDI flow in 2017
Investments: global comparison (1/2)
1: Foreign direct investment, see glossary for definition 2: Current US$, see glossary for differences between current and constant US$ 3: United
Arab Emirates
Note: Regions only include the 150 countries covered by the Statista Country Reports
37 Source: UNCTAD Foreign Direct Investment Inward and Outward flows and stock 2018
The United States also had the highest outward FDI
sum in 2017, with US$342.3 billion
Investments: global comparison (2/2)
1: Foreign direct investment, see glossary for definition 2: Current US$, see glossary for differences between current and constant US$ 3: United
Arab Emirates
Note: Regions only include the 150 countries covered by the Statista Country Reports
38 Source: UNCTAD Foreign Direct Investment Inward and Outward flows and stock 2018
Inward FDI amounted to $39.9 billion in 2017
Investments: development
39.92
36.19
34.58
27.42 28.20
24.20
15.95
12.46 11.78 11.30
8.49
7.57
5.07
1.68
1: Foreign direct investment, see glossary for definition 2: Current US$, see glossary for differences between current and constant US$ Note: FDI
flows with a negative sign indicate that at least one of the three components of FDI (equity capital, reinvested earnings or intra-company loans) is
negative and not offset by positive amounts of the remaining components. These are instances of reverse investment or disinvestment.
39 Source: UNCTAD Foreign Direct Investment Inward and Outward flows and stock 2018
FITCH
SOLUTIONS
RISK INDICES
▪ Methodology
▪ Development
40
Operational risk breakdown
Methodology
The index focuses on four main risk areas: Labor market Logistics Trade & investment Crime & security
(25%) (25%) (25%) (25%)
▪ Labor market: evaluation of the risks surrounding the size, education
levels and costs of employing workers in a country
▪ Trade & investment: evaluation of the openness of an economy, the Trade procedures Vulnerability
Availability of labor Legal
level of government intervention and the quality and efficacy of the and governance to crime
legal environment
▪ Crime & security: evaluation of operating conditions with respect to Market size Government
interstate conflict risk, terrorism, crime, including cybercrime and Labor costs Business crime
and utilities intervention
organized crime
Note: THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS MACRO RESEARCH and is NOT a comment on Fitch Ratings' credit ratings. Any comments
or data included in the report are solely derived from Fitch Solutions Macro Research and independent sources. Fitch Ratings' analysts do not share data
41 or information with Fitch Solutions Macro Research.
Overall index score increased in 2019, which means
that the operational risk for India decreased
Development
Note: THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS MACRO RESEARCH and is NOT a comment on Fitch Ratings' credit ratings. Any comments
or data included in the report are solely derived from Fitch Solutions Macro Research and independent sources. Fitch Ratings' analysts do not share data
or information with Fitch Solutions Macro Research.
1: Scale of 0-100, with 100 being the lowest risk
42 Source: Fitch Solutions
In the “labor market” area, India is 5.4 points behind
the regional high performer
High and low performer
Comparison of country and territory scores to highest and lowest scores 1 in the region and worldwide in 2019
United States 79.0 Netherlands 88.6 Hong Kong (SAR) 88.7 Norway 92.3
Global
high/low
Sierra Leone 25.4 South Sudan 16.9 Chad 18.9 South Sudan 4.5
Note: THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS MACRO RESEARCH and is NOT a comment on Fitch Ratings' credit ratings. Any comments
or data included in the report are solely derived from Fitch Solutions Macro Research and independent sources. Fitch Ratings' analysts do not share data
or information with Fitch Solutions Macro Research.
1: Scale of 0-100, with 100 being the lowest risk
43 Source: Fitch Solutions
India had the 73rd lowest operational risk in 2019
Global comparison
Note: THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS MACRO RESEARCH and is NOT a comment on Fitch Ratings' credit ratings. Any comments
or data included in the report are solely derived from Fitch Solutions Macro Research and independent sources. Fitch Ratings' analysts do not share data
or information with Fitch Solutions Macro Research.
1: Scale of 0-100, with 100 being the lowest risk 2: Democratic Republic of the Congo
44 Source: Fitch Solutions
With an index score of 50.7, the operational risk in
India is relatively high
Regional comparison
▪ In 2019, India ranks #73 in the Fitch operational index score out of 150 countries and territories covered by the Statista Country Reports.
▪ It comes #1 when compared to the other 6 countries and territories in the region South Asia.
Note: THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS MACRO RESEARCH and is NOT a comment on Fitch Ratings' credit ratings. Any comments
or data included in the report are solely derived from Fitch Solutions Macro Research and independent sources. Fitch Ratings' analysts do not share data
or information with Fitch Solutions Macro Research.
1: Scale of 0-100, with 100 being the lowest risk
45 Source: Fitch Solutions
SOCIETY
▪ Population
▪ Income
46
Population projected to reach 1,677.4 million by 2058
Population (1/4)
1: The medium fertility variant assumes that total fertility will eventually converge toward a level of 1.85 children per woman
47 Source: United Nations, Department of Economic and Social Affairs, Population Division 2017
57.2% of the population were between the age 20
and 64, more than half of them were men
Population (2/4)
Reading support: 3.1% of the population is female and between the age of 40 and 44.
48 Source: United Nations, Department of Economic and Social Affairs, Population Division 2017
Population increased by 1.1%, which is below regional
average, to a total of 1,354,051,854 in 2018
Population (3/4)
Population growth, total population, and real GDP1 per capita in US$2 in South Asia in 2018
Population growth 2017-2018 in % Regional average Real GDP per capita: US$500
2.5
Afghanistan
2.0
Pakistan
South Asia
Bhutan
1.5
Nepal India
1.0 Bangladesh
0.5
0.0
0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 1,320 1,340 1,360 1,380
1: See glossary for definitions 2: Constant US$, see glossary for definition of current and constant US$
Source: United Nations, Department of Economic and Social Affairs, Population Division 2017, International Monetary Fund, World Economic
49 Outlook Database 2018, Statista 2018
India had the 2nd highest total population in the
world in 2018
Population (4/4)
1: Countries not included in the Statista Country Reports are omitted in this table 2: Democratic Republic of the Congo
50 Source: United Nations, Department of Economic and Social Affairs, Population Division 2017
Income growth at 10.3% was slower and income per
capita at US$1,740 was higher than average
Income
Disposable income growth, disposable income1 per capita in US$2 and population in South Asia3 in 2016
Disposable income growth 2015-2016 in % Regional average Population: 250 million
20.0
Bhutan
17.5
15.0 Bangladesh
South Asia
12.5
10.0 India
7.5
Nepal Pakistan
5.0
2.5
0.0
0 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 2,750 3,000
1: See glossary for definitions 2: Current US$, see glossary for definition of current and constant US$ 3: Afghanistan excluded from the regional
average due to unavailability of data
Source: United Nations, Department of Economic and Social Affairs, Population Division 2017, United Nations Statistics Division 2018,
51 International Monetary Fund, World Economic Outlook Database 2018, Statista 2018
In global comparison, India has a medium level of
human development
Human Development Index
Human Development Index in 2017 ▪ With 64.0%, India ranks #130 in comparison
of 189 countries.
0%-54% 55%-69% 70%-79% 80%-100%
▪ The Human Development Index was
created to emphasize that people and their
capabilities should be the ultimate criteria
for assessing the development of a country,
not economic growth alone
▪ Consumer behavior
▪ eCommerce
▪ FinTech
53
The retail market in India is maturing
Retail structure (1/4)
▪ Global grocery chains are not present ▪ Global grocery chains start operations in large ▪ Global chains operate in large cities, medium-
cities1 sized cities and rural areas1
▪ National store ownership characterized by
handcart or independent stores ▪ Store ownership is characterized by ▪ Store ownership is characterized by independent
independent stores, national or international stores and national or international chains
▪ Traditional1 payment methods are chains
primarily used ▪ Traditional, electronic and mobile payment
▪ Traditional and electronic payment methods1 methods1 are commonly used
are commonly used
Note: Please refer to the appendix for further information on the methodology
1: See glossary for definitions
54 Source: Statista 2019
In India, global grocery chains are represented in
medium-sized and large cities
Retail structure (2/4)
International grocery chains Store location International grocery chains Store location
medium-sized and large cities1
large cities1
1: See glossary for definitions
Note: Information based on Statista Fact Check
56 Source: Statista 2019
Insights into the grocery structure and shopping
behavior in India
Retail structure (4/4)
The grocery structure in India is characterized by hypermarkets, convenience stores, discounters and handcarts.
Consumers tend to buy groceries on the weekends and prefer going to supermarkets, since they offer a broad variety of products in one place.
Furthermore, they enjoy the broad offer of different discount and bonus plans which save them money.
18.7%
14.4% 15.0% 15.3%
12.3%
10.3%
6.4% 6.7%
4.5% 3.5% 4.1% 3.5%
2.2% 2.5% 2.9% 3.2% 2.4% 1.9% 2.0% 2.9%
0.8% 0.9%
Food and Alcoholic Clothing Housing House Health Transport Communi- Recreation Education Restaurants Other2
non- beverages, and and maintenance cations and culture and hotels
alcoholic tobacco and footwear utilities1
beverages narcotics
US$1,349.59bn India
1: Also includes furnishing and household equipment expenses 2: Miscellaneous goods and services 3: Current US$, see appendix for
differences between current and constant US$
Note: Regions only include the 150 countries covered by the Statista Country Reports
58 Source: United Nations Statistics Division 2019; United Nations Demographic Statistics Database 2019
Smartphones are the most frequently used product in
India
Consumer behavior: product ownership
97.5%
95.1%
72.0%
69.0%
60.4%
57.5%
42.4% 41.4%
Smartphone Mobile Internet Bank Car Landline internet Electricity supplier Health insurance Insurance
or telephone or telephone
Note: “Which of these products and services do you own / use?”; Multi Pick; n=1,045
59 Source: Statista Global Consumer Survey, as at August 2018
Consumers in India value smartphone brands the
most
Consumer behavior: brands
Brand awareness
Male Female
80.1%
72.5% 71.5%
68.1%
56.8%
50.5%
47.4% 48.5%
41.3% 40.6% 40.0%
38.6%
34.3% 35.4% 36.0% 34.5%
34.1%
12.4%
n.a.
Smartphones Clothing TV and HiFi Vehicles Household Cosmetics Food Alcoholic Bags and Detergents Furniture Toys and
and Shoes appliances and and non- drinks accessories and baby
bodycare alcoholic cleaning products
drinks products
Note: Top 3 brand awareness by category ; “In which of these categories do you pay particular attention to brands?”; Multi pick; n=1,045
60 Source: Statista Global Consumer Survey, as at August 2018
With US$27,339m and a share of 46.1%, eCommerce
generates the highest digital revenues
Consumer behavior: digital expenditures
10.7%
▪ In Asia, the digital expenditures as a
6.3% share of consumer spending per capita
5.8% reach 10.7% in 2019
4.4%
2.8% 3.3% ▪ In India, the revenue in the eCommerce
2.4%
market amounts to US$27,339.0m in
2019
Africa & Asia India Australia Europe South North ▪ The eServices market generates revenues
Middle East America America of US$11,383.6m in 2019
Total digital revenues1 in this country and breakdown in 2019 ▪ In the eTravel market, 2019 revenues add
up to US$17,796.7m
1: Including all revenues generated within the eCommerce, eTravel, eServices, Digital media and Connected car markets 2: Regions only include
countries listed in the Digital Market Outlook
61 Source: Statista Digital Market Outlook 2018
Compared to its region, eCommerce penetration is
high and growth is above average
eCommerce: overview (1/2)
eCommerce revenue growth, ARPU1 in US$ and penetration2 in South Asia and regions in 2019
eCommerce revenue growth 2018-2019 in % Regional averages ARPU: US$250
30
28 Emerging Bangladesh Bhutan Mature
South Asia India
26
24 East Asia
Pakistan & Pacific
22
20 Sub-Saharan Africa World
18 Middle East North America
Nepal
16 & North Africa
14
12
10 Latin America
8 & Caribbean
6
4
4 Eastern Europe Europe3
& Central Asia
2
Delayed Saturated
0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80
eCommerce penetration in %
1: ARPU = average revenue per user 2: Share of active paying customers from the total population 3: Countries with a GDP per capita lower than
US$16,000 are excluded 4: Countries with a GDP per capita higher than US$16,000 are excluded
62 Source: Statista Digital Market Outlook 2019
Insights into the eCommerce structure in India
eCommerce: overview (2/2)
▪ Fashion: Myntra
Selected delivery providers in this country
▪ Electronics & Media: Flipkart
▪ GoJavas
▪ Food & Personal Care: Amazon, Flipkart
▪ Delhivery
▪ Furniture & Appliances: Urbanladder
▪ ATS
▪ Toys, Hobby & DIY: eBay
▪ Blue Dart
4,190
7,221
5,202
1,927
3,047
8,274
5,016
2019 2023 Bags & Clothing Shoes Consumer Household
accessories electronics appliances
1: CAGR: Compound Annual Growth Rate / average growth rate per year
Note: Top 5 product categories purchased primarily online; “Which of these products do you mostly buy or order online?“; multi pick; n=1,045
64 Source: Statista Digital Market Outlook 2018, Statista Global Consumer Survey, as at August 2018
Selected online store: Fabindia
eCommerce: selected store profile
Payment methods
Direct Bank
E-Wallets Cards Invoice Cash Other1
debits transfer
Logistics providers
Domestic shipping companies, DHL/FEDEX
1: CAGR: Compound Annual Growth Rate/ average growth rate per year
66 Source: Statista Digital Market Outlook 2018
INFRA-
STRUCTURE
▪ Digital
▪ Transport
▪ Electrical
67
35.7% used the internet and there were 89.2 mobile
cellular subscriptions per 100 people
Digital infrastructure (1/2)
Internet penetration1 in 2018 Mobile phone subscriptions1 per Fixed broadband subscriptions1 per
100 inhabitants in 2018 100 inhabitants in 2018
84.1% 124 34
89 90
35.7%
32.0%
1 2
India United States South Asia India United States South Asia India United States South Asia
3.3
2.9 2.9 2,407.3 million ton-km in 2017
1: Logistics Performance Index (5 = high performance, 1 = low performance), see glossary for definition 2: Ton-kilometer = cargo weight
transported times distance transported, TEU = Twenty-foot equivalent unit (standard-size container) 3: Container port traffic
70 Source: World Bank World Development Indicators 2018
84.5% of the population in India had access to
electricity
Electrical infrastructure
98.4%
2016 84.5% 2016 46
77.6%
97.5%
2015 88.0% 2015 86
83.2%
97.1%
2014 81.2% 2014 102
73.6%
▪ Political environment
72
India is an older democracy
Political profile
51.9%
26.9%
73 Source: Political Handbook of the World 2016-2017, CIA World Factbook, ElectionGuide, Freedom House
Rule of Law in India is low in global comparison
Political environment: rule of law
Percentile rankings in rule of law in 2017 ▪ When it comes to the rule of law, India has
ranked #99 in the comparison of the 214
0%-20% 21%-40% 41%-60% 61%-80% 81%-100% countries and territories covered by the
World Bank Worldwide Governance
Indicators in 2017
Percentile rankings in regulatory quality in South Asia in 2017 ▪ In 2017, India ranked #121 in Regulatory
Quality out of 214 countries and territories
0%-20% 21%-40% 41%-60% 61%-80% 81%-100% covered by the Worldwide Governance
Indicators
▪ Glossary
▪ Authors
78
Methodology and data used in this report
Data description and methods (1/2)
Data sources
The Statista Country Reports present quantitative data from various private and public sources of information. These sources include the International
Monetary Fund, the World Bank, the United Nations, the OECD, the World Economic Forum, the International Labour Organization, the CIA World
Factbook, the Election Guide, the Freedom House, the Political Handbook of the World and Statista itself. The data sources are indicated in footnotes
throughout the report.
Data expressed in constant US$ reflect the value of a currency in a particular base year. The individual base year listed in a country’s national accounts
differs from country to country. Constant series are used to measure the true growth of a series by adjusting for the effects of price inflation.
79
Methodology and data used in this report
Data description and methods (2/2)
The survey sample consists of 381 participants for a total of 127 countries. Due to the small sample size, the information presented in this report gives
the reader a qualitative rough impression of the business culture in a country and cannot always be generalized.
The Statista Fact Check includes 254 participants and covers 127 countries worldwide. The information presented by the Statista Fact Check gives the
reader an impression of the retail and eCommerce structures within the country, but cannot always be generalized.
80
Glossary of terms
Glossary (1/4)
Central bank interest rates: The central bank policy rate (CBPR) Current US$: Data reported in current US$ reflect the value the
is the interest rate that is used by central banks to implement or signal currency has in a particular year. Current data series are influenced by
their monetary policy stance. It is set to influence the economy (e.g. the effect of price inflation and differences in exchange rates, and the
consumer prices, exchange rate or credit expansion, among others). It comparability of growth rates between countries is limited.
also establishes the levels of the rest of the interest rates in the
economy as most private banks obtain their money from the central Discounter: A discounter is a department store which offers items at
banks at that rate. a lower price than other retail stores.
Constant US$: Data expressed in constant US$ show the data for Disposable income: Gross national disposable income may be
each year in the value of a particular base year. The base year of each derived from gross national income by adding all current transfers in
country's national accounts is country specific. Constant series are used cash or in kind, receivable by resident institutional units from non-
to measure the true growth of a series by adjusting for the effects of resident units, and subtracting all current transfers in cash or in kind
price inflation. payable by resident institutional units to non-resident units.
Control of corruption: Perceptions of the extent to which public Ease of doing business score: The ease of doing business score
power is exercised for private gain, including both petty and grand forms captures the gap of each economy from the best regulatory
of corruption, as well as "capture" of the state by elites and private performance observed across all economies considered. An economy's
interests. ease of doing business score is reflected on a scale from 0 to 100, where
0 represents the lowest and 100 represents the best performance.
Convenience store: A convenience store sells convenience goods
(e.g. frequently purchased inexpensive goods) and usually opens from Electronic payment method: Electronic payment methods
early hours to late at night. combine debit and credit card payments.
81
Glossary of terms
Glossary (2/4)
Expense (% of GDP): Expense is cash payments for operating Government expense: Expense is cash payments for operating
activities of the government in providing goods and services. It includes activities of the government in providing goods and services. It includes
compensation of employees (such as wages and salaries), interest and compensation of employees (such as wages and salaries), interest and
subsidies, grants, social benefits, and other expenses such as rent and subsidies, grants, social benefits, and other expenses such as rent and
dividends. dividends.
Fiscal deficit/surplus: Fiscal deficit occurs when government Government revenue: Revenue is cash receipts from taxes, social
expenses exceed revenues. When revenues exceed expenses, there is a contributions, and other revenues such as fines, fees, rent, and income
fiscal surplus. from property or sales. Grants are also considered as revenue but are
excluded here.
Fixed broadband subscriptions: Fixed subscriptions to high-
speed access to the public internet at downstream speeds equal to or Gross domestic product: Gross domestic product is the expen-
greater than 256 kbit/s. diture on goods and services by residents in the form of consumption
expenditures, gross capital formation and exports minus imports.
Foreign direct investment: Foreign direct investment is an
investment made by a resident enterprise in one economy (direct Handcart or pavement vendors: Handcart or pavement
investor or parent enterprise) with the objective of establishing a lasting vendors are street vendors, which sell products without a solid location
interest in an enterprise that is resident in another economy. or building.
General government gross debt: Gross government debt Hypermarket: A hypermarket is a very large self-service warehouse
consists of all liabilities that require payment or payments of interest that combines the features of a supermarket, department store,
and/or principal by the debtor (government) to the creditor at a date or discount store and specialty store in one location.
dates in the future, such as loans, insurance, pensions and debt
securities. Independent, owner-based store: An independent, owner-
based store is a small store with a single or up to three locations.
Usually, the store is owned by an individual or a two-person partnership.
82
Glossary of terms
Glossary (3/4)
Inflation: The rate of inflation is the percent change in the average Merchandise trade: Goods which add or subtract from the stock of
consumer price index (CPI). The average CPI is a measure of a country's material resources of a country by entering (imports) or leaving (exports)
average level of prices based on the cost of a typical basket of consumer its economic territory.
goods and services in a given period.
Mobile payment method: Mobile payment means the use of
Internet penetration: Share of individuals in a country who have smartphones to pay at a grocery store.
used the Internet (from any location) in the last 3 months.
Mobile phone subscriptions: Subscriptions to a public mobile
Labor force: The labor force is the sum of persons in employment telephone service that provide access to the PSTN using cellular
plus persons in unemployment. Together, these two groups of the technology.
population represent the current supply of labor for the production of
goods and services taking place in a country through market Net official development assistance: Net official development
transactions in exchange for remuneration. assistance (ODA) consists of disbursements of loans made on
concessional terms (net of repayments of principal) and grants by official
Large city: A large city is characterized by more than 100,000 agencies of the members of the Development Assistance Committee
inhabitants. (DAC), by multilateral institutions, and by non-DAC countries to promote
economic development and welfare in countries and territories in the
Logistics performance index: Logistics professionals' perception DAC list of ODA recipients. It includes loans with a grant element of at
of a country's quality of trade and transport-related infrastructure (e.g. least 25 percent (calculated at a rate of discount of 10 percent).
ports, railroads, roads, information technology), on a scale ranging from
1 (very low) to 5 (very high). Scores are averaged across all respondents . Real GDP: Real gross domestic product (GDP) is an inflation-adjusted
measure that reflects the value of all goods and services produced by an
Medium-sized city: A medium-sized city has a population between economy in a given year, expressed in base-year prices, and is often
20,000 and 100,000 people. referred to as "constant-price", "inflation-corrected" GDP or "constant
dollar GDP". Unlike nominal GDP, real GDP can account for changes in
price level and provide a more accurate figure of economic growth.
83
Glossary of terms
Glossary (4/4)
Value added: Value added is the net output of a sector after adding
up all outputs and subtracting intermediate inputs. It is calculated
without making deductions for depreciation of fabricated assets or
depletion and degradation of natural resources.
84
About the Statista Global Consumer Survey
Finance Additional
Characteristics
The Consumer Market Outlook presents the key performance 4 Home &
Accessories
indicators sales, revenues and prices of the most important Laundry Care
consumer markets worldwide. Our specialized analysts’ market
calculations are based on data from validated sources. Alcoholic Drinks Hot Drinks
Household
▪ Revenues, sales, prices and forecasts Apparel
Appliances
▪ More than 200 product categories in up to 50 countries
Consumer Non-Alcoholic
▪ Covering the period 2010 to 2023 Electronics Drinks
Tissue &
Food
Hygiene Paper
Tobacco
Footwear
Products
The answers to these and many more questions can be found in Statista's
Digital Market Outlook. It provides forecasts, detailed market insights, and key
indicators for the digital economy.
Direct access & downloads, fully integrated into the Statista database
Coming in 2019:
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The Statista Toplists show essential KPIs and include contact details and
address information for each company.
The Toplists are the perfect way to start researching leads in your sales
department, to get quick insights into new markets and as a starting point for
further market assessment.
Volker Staffa studied Business Tytti Mälkki studied International Oliver Sánchez studied Inter- Melanie Mesloh studied Inter-
with a focus on Logistics and Business and Politics in Copen- national Business in Mexico and national Economics, Innovation
Supply Chain Management in hagen, São Paulo, and Beijing, Comparative Local Develop- Economics, and Entrepreneur-
Hamburg and Rhode Island. focusing on subnational econo- ment in Germany, Italy, and ship in Bremen and Hatfield.
metric analysis. Hungary.
Volker has been responsible for Melanie joined Statista in fall
the Statista Industry Reports Tytti has been part of Statista Oliver joined Statista in summer 2018 with prior experience in
since 2012. since summer 2017 with prior 2018 after numerous years in public research.
experience in consulting and marketing and strategy.
communications.
www.statista.com