The bigger attraction, however, is India’s growing domestic consumption base and digital economy. The estimated real growth in consumption is the third highest behind only the US and China. Given that these both are large but relatively saturated markets with relatively lower growth, India is a uniquely placed opportunity for MNCs looking for growth avenues in the coming decade.
India’s consumer digital economy is expected to be a US$800 billion market in 2030, registering a ~10x growth from 2020. The e-commerce growth has positive implications for MNCs:
- It is more dynamic than any traditional economy
- The next phase of growth is coming from small urban and rural areas
- Digitization is creating a change in the pattern of consumption in India. Growth in e-commerce also means growth in the formal sector
The survey assesses the industry view on what more should India focus on, to maintain its attractiveness in an uncertain environment marked with new-generation, geo-strategic regional economic agreements. MNCs consider EoDB as their first preference in terms of continuing the ongoing reform exercise. A large majority of businesses laud the government’s consistent efforts for enhancing ease of doing business. Over 60% feel that the business environment has improved for them in last three years.