Dynamic Growing Businesses in India

SUV Markets in India

India has been adjourned the fifth best country in the world for dynamic growing businesses, as per the Grant Thornton Global Dynamism Index. The index gives a reflection of how suitable an environment the country offers for dynamic businesses. It is also important to note that the Indian economy is growing, despite the economic crisis that engulfed the world.

A survey conducted by Deloitte Touche Tohmatsu Ltd (Deloitte) showed that the Indian tax climate was also considered to be reasonably favorable and India continued to be an attractive investment destination.

.Figure: Growth in Population categories with higher incomes (Source NCAER Estimates)

The population categories with higher incomes has changed drastically from 2001-02 to 2009-10. Whilst the high income category (incomes of >180K INR per month) in 2001-02 was 13.8K households, this increased to 46.7K households in 2009-10; an increase of 16%. The middle income category (monthly income of 45K-180K INR per month) has also seen an increase from 109.2K households in 2001-02 to 140.7K households in 2009-10, with a growth of 3%. The low income category (<45K INR / month) has reduced from 65.2K households to 41K households, a decline of 6% from 2001-02 to 2009-10.

In demographic terms, India is developing a bulging belly. From a population base of 1028mm in 2002 the population today has grown to more than 1200 mm. Better healthcare facilities, reduction in infant and maternal mortalities, better primary secondary and tertiary care, better preventive programs have increased life expectancy. However a significant reduction in the birth rate has not been made.

The result is that population in age group 60+ increased from 7% to 8% from 2002 to 2012. The productive age group (15-69 years) has increased