Sanjay Naik, 26, a farmer in Karnala in the state of Maharashtra in western India, is planning to buy his first motorcycle.
He'll be the first in his family to own a vehicle. He was also the first to buy a smartphone a few months ago.
“Hopefully, in a few years I'll buy a car,” he says.
Consumer spending is on the rise in India. And there are ambitions for it to expand dramatically over the coming years. India's president, Ram Nath Kovind, this month said the country is striving to become the world's third-largest consumer market by 2025. The country is currently ranked eighth largest consumer market, according to the World Bank.
“The outlook for India's consumer market looks promising,” says Kamaljit Anand, the managing partner and regional head, Europe and mainland Asia, at KiE Square, an analytics firm. “There are several factors, including higher disposable incomes, and societal change is also towards consumerism.”
The demographics are certainly favourable. India has a population of 1.3 billion and half of those people are under the age of 25. Incomes are ticking up. India's per capita income is still very low compared to developed countries, but it grew by close to 10 per cent to 103,219 rupees (Dh5,584) in the financial year to the end of March compared to the previous year. Boston Consulting group projects that total consumption spend in India will rise three fold to $4 trillion rupees by 2025, growing at more than double the global rate over the coming years.
“India is probably now the most aspirational country,” says Sridhar Gundaiah, the founder and chief executive of StoreKing, an online shopping platform with a network of 50,000 retailers in small towns and villages across 10 states in the country. Urbanisation is also helping to drive consumption growth. The rural populations are also seeking to replicate the lifestyles of those in the cities, as they become more exposed to these trends and are increasingly targeted by consumer goods companies, Mr Gundaiah says. The changes he has seen in consumption patterns in the past decade have been “dramatic”, he says.
“As people jump a class, they want status symbols to flaunt,” says Mr Gundaiah.
Brands such as Zara, Samsung and Nestle are among those that have flocked to India to tap into rising consumer spending.
“Overall affluence is growing in India,” says Anupam T, the vice president of Oberoi Mall, one of Mumbai's upmarket shopping centres, which houses stores including Levi's, Tommy Hilfiger, and Nike. He says these days many Indians have no qualms about spending upwards of 8,000 rupees on a pair of trainers, whereas 10 years ago that was not the case.
“We are clearly moving towards becoming a huge market,” says Easwar Krishna Iyer, the associate professor for marketing at Great Lakes Institute of Management in Chennai. “That we would become the third-largest market is just because, as things stand now, there doesn’t seem to be another country that can ramp up as fast as we can other than the United States and China.”
India gaining increased access to electricity is also helping to drive demand for electronic goods, he adds.
It was the economic liberalisation of the 1990s in India that set the ball rolling and opened up the market, leading to a number of foreign brands entering the country and creating more choice for consumers. Foreign direct investment rules have been further relaxed in recent years.
But there are still a number of challenges. While India is clearly a growth story and its economy has expanded rapidly over the past decade, there is still a very large percentage of the population that lives in poverty. There are 224 million who live below the $1.90 per day poverty line in India, according to the World Bank.
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Further India rate hike more likely as inflation surges
Indian yogi and billionaire set to launch app to rival Whatsapp
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There are estimates that more than 40 per cent of Mumbai's population live in slums. Most of those residents would not even be able to gain access to the financial capital's swanky malls, let alone be able to afford to shop in the big-name stores.
“This situation is going to change only marginally as the global markets suffer from income and wealth divide and it is going to be no different for India,” says Mr Anand. “The income divide is likely to continue and the majority consumption spending would come from the the top half.”
He says there are disparities that need to be addressed to allow more of the population to increase their real incomes.
“Traditional sectors like agriculture and industry need to show strong growth, vis-a-vis the services sector, for the growth story to be a pan-India story,” he says. “Currently income disparity exists geographically, ethnographically and socio-economically and, if not handled well, can become a boiling point of next decade.”
He points out that the growth of India's consumer market has not been as great as might have been expected earlier in the decade.
For example, although Mr Naik is planning to buy a motorcycle, he would have to take a loan to make the purchase and the repayments would end up eating into a large portion of his income over the next couple of years.
Higher fuel and food costs have already hit India's poor hard, with inflation spiking to a 14-month high of 4.43 per cent in May. This month, the central bank, the Reserve Bank of India, hiked interest rates by 25 basis points to 6.25 per cent because of mounting concerns about inflation and many expect another hike this year. This increases borrowing costs.
“In a nutshell, the interest rate play and creation of income opportunities would be the most important macroeconomic spectacle in the next decade if consumption growth in the rural and slum economy is to be sustained,” says Mr Anand.
The Indian government's controversial demonetisation move in November 2016, which saw the two highest-value banknotes banned, sapping liquidity, and the introduction of a new goods and services tax last year impacted consumer spending, but he says India is now emerging from this.
Retailers are upbeat and say they have seen their customers become more and more affluent over the years, and they only expect that trend to continue.
“Social media has a very important role to play here, as the consumer wants to fit in that space,” says Sharad Venkta, the managing director and chief executive of Toonz Retail India, which has more than 100 children's clothing stores across the country. “And women have started gaining more power now, and have been influencing their families and society, both in urban and rural parts of the country.”
The rise of internet use in the country, with Indians having access to cheaper smartphones and data, is boosting the e-commerce market in the country, giving people more opportunities to spend.
“This is also fuelling the growth and enabling a lot of the compulsiveness in the Indian consumer to start buying goods,” says Mr Gundaiah. “Credit is also fuelling consumption. India is just picking up. We have mobile wallets, credit cads, greater access to the banking network. All this is putting a lot of money into people's hands. The mindsets are changing. The millennials don't think about saving – they think about spending.”
The potential of the e-commerce sector is reflected in the fact that US retail major Walmart last month announced that it was buying a majority stake in the Bangalore-based online marketplace Flipkart, the country's homegrown answer to Amazon.
“Indian consumerism is already here,” says Mr Iyer.
SCHEDULE
December 8: UAE v USA (Sharjah Cricket Stadium)
December 9: USA v Scotland (Sharjah Cricket Stadium)
December 11: UAE v Scotland (Sharjah Cricket Stadium)
December 12: UAE v USA (ICC Academy Oval 1)
December 14: USA v Scotland (ICC Academy Oval 1)
December 15: UAE v Scotland (ICC Academy Oval 1)
All matches start at 10am
UAE currency: the story behind the money in your pockets
The%20Witcher%20-%20season%20three
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EVarious%0D%3Cbr%3E%3Cstrong%3E%0D%3Cbr%3EStars%3A%20%3C%2Fstrong%3EHenry%20Cavill%2C%20Freya%20Allan%2C%20Anya%20Chalotra%3Cstrong%3E%0D%3Cbr%3E%0D%3Cbr%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
More on Quran memorisation:
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The biog
Age: 59
From: Giza Governorate, Egypt
Family: A daughter, two sons and wife
Favourite tree: Ghaf
Runner up favourite tree: Frankincense
Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The%20specs
%3Cp%3E%3Cstrong%3EPowertrain%3A%20%3C%2Fstrong%3ESingle%20electric%20motor%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E201hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E310Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20auto%0D%3Cbr%3E%3Cstrong%3EBattery%3A%20%3C%2Fstrong%3E53kWh%20lithium-ion%20battery%20pack%20(GS%20base%20model)%3B%2070kWh%20battery%20pack%20(GF)%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E350km%20(GS)%3B%20480km%20(GF)%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C900%20(GS)%3B%20Dh149%2C000%20(GF)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Racecard
6.35pm: The Madjani Stakes – Group 2 (PA) Dh97,500 (Dirt) 1,900m
7.10pm: Evidenza – Handicap (TB) Dh87,500 (D) 1,200m
7.45pm: The Longines Conquest – Maiden (TB) Dh82,500 (D) 2,000m
8.20: The Longines Elegant – Conditions (TB) Dh82,500 (D)
8.35pm: The Dubai Creek Mile – Listed (TB) Dh132,500 (D) 1,600m
9.30pm: Mirdif Stakes – Conditions (TB) Dh120,000 (D) 1,400m
10.05pm: The Longines Record – Handicap (TB) Dh87,500 (D) 1,900m
How to donate
Text the following numbers:
2289 - Dh10
6025 - Dh 20
2252 - Dh 50
2208 - Dh 100
6020 - Dh 200
*numbers work for both Etisalat and du
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Can NRIs vote in the election?
Indians residing overseas cannot cast their ballot abroad
Non-resident Indians or NRIs can vote only by going to a polling booth in their home constituency
There are about 3.1 million NRIs living overseas
Indians have urged political parties to extend the right to vote to citizens residing overseas
A committee of the Election Commission of India approved of proxy voting for non-resident Indians
Proxy voting means that a person can authorise someone residing in the same polling booth area to cast a vote on his behalf.
This option is currently available for the armed forces, police and government officials posted outside India
A bill was passed in the lower house of India’s parliament or the Lok Sabha to extend proxy voting to non-resident Indians
However, this did not come before the upper house or Rajya Sabha and has lapsed
The issue of NRI voting draws a huge amount of interest in India and overseas
Over the past few months, Indians have received messages on mobile phones and on social media claiming that NRIs can cast their votes online
The Election Commission of India then clarified that NRIs could not vote online
The Election Commission lodged a complaint with the Delhi Police asking it to clamp down on the people spreading misinformation
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Diriyah%20project%20at%20a%20glance
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What it means to be a conservationist
Who is Enric Sala?
Enric Sala is an expert on marine conservation and is currently the National Geographic Society's Explorer-in-Residence. His love of the sea started with his childhood in Spain, inspired by the example of the legendary diver Jacques Cousteau. He has been a university professor of Oceanography in the US, as well as working at the Spanish National Council for Scientific Research and is a member of the World Economic Forum’s Global Future Council on Biodiversity and the Bio-Economy. He has dedicated his life to protecting life in the oceans. Enric describes himself as a flexitarian who only eats meat occasionally.
What is biodiversity?
According to the United Nations Environment Programme, all life on earth – including in its forests and oceans – forms a “rich tapestry of interconnecting and interdependent forces”. Biodiversity on earth today is the product of four billion years of evolution and consists of many millions of distinct biological species. The term ‘biodiversity’ is relatively new, popularised since the 1980s and coinciding with an understanding of the growing threats to the natural world including habitat loss, pollution and climate change. The loss of biodiversity itself is dangerous because it contributes to clean, consistent water flows, food security, protection from floods and storms and a stable climate. The natural world can be an ally in combating global climate change but to do so it must be protected. Nations are working to achieve this, including setting targets to be reached by 2020 for the protection of the natural state of 17 per cent of the land and 10 per cent of the oceans. However, these are well short of what is needed, according to experts, with half the land needed to be in a natural state to help avert disaster.
INDIA SQUAD
Virat Kohli (capt), Rohit Sharma, Shikhar Dhawan, KL Rahul, Vijay Shankar, MS Dhoni (wk), Kedar Jadhav, Dinesh Karthik, Yuzvendra Chahal, Kuldeep Yadav, Bhuvneshwar Kumar, Jasprit Bumrah, Hardik Pandya, Ravindra Jadeja, Mohammed Shami
BACK%20TO%20ALEXANDRIA
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Company%20profile
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