The concept of measuring affordability in hours worked rather than just rupees is briliant. Breaking down India into nine distinct consumer economies really shows how misleading national averages can be. The analysis about formal job creation lagging behind the eduational pipeline explains so much about why consumtion patterns aren't following the headline GDP growth. This fragmentation has huge implications for anyone trying to understand the actual market dynamics.
I agree that per-capita GDP is a poor gauge of India's economy. The narratives we draw from the data are also only as good as the data itself. High incidence under-reporting or even mis-reporting of financial data in India casts severe doubt on the national GDP - which even if correct, is a measure of economic output rather than household affordability.
It would be nice to see the first chart (income vs population size) get Y-axis labeling for incomes - it is hard to justify nine categories when the incomes for the last 4 seem nearly identical. Are "urban mass" and "urban blue collar" really different?
This post truly does a fantastic job of putting to words the reality of the intersection of everyday peoples' lives in the country & the underlying factors that will eventually drive the future of the country's FMCG ; thank you Manish
The concept of measuring affordability in hours worked rather than just rupees is briliant. Breaking down India into nine distinct consumer economies really shows how misleading national averages can be. The analysis about formal job creation lagging behind the eduational pipeline explains so much about why consumtion patterns aren't following the headline GDP growth. This fragmentation has huge implications for anyone trying to understand the actual market dynamics.
Super post! Would you pls share the link / copy of CLSA report you've referenced?
+1 , please share and other sources you have used to
I agree that per-capita GDP is a poor gauge of India's economy. The narratives we draw from the data are also only as good as the data itself. High incidence under-reporting or even mis-reporting of financial data in India casts severe doubt on the national GDP - which even if correct, is a measure of economic output rather than household affordability.
It would be nice to see the first chart (income vs population size) get Y-axis labeling for incomes - it is hard to justify nine categories when the incomes for the last 4 seem nearly identical. Are "urban mass" and "urban blue collar" really different?
Does India really have 0.3 (3 lakh) million households that earn an 3.4 Million USD (~30 crores) Per Year?
This post truly does a fantastic job of putting to words the reality of the intersection of everyday peoples' lives in the country & the underlying factors that will eventually drive the future of the country's FMCG ; thank you Manish
Too brutal
Great post - so useful to understand the reality of India - thanks for sharing
Brilliant post.