Economic Outlook

The data in exhibit 1 demonstrates why entry into India is a great idea for a prospective manufacturer.^[1] Over the past ten years, India’s GNI has been steadily increasing. This reveals that the country is increasing their purchase power and net income which will serve as a confidence booster for any potential investor and/or companies looking to expand into this market. In just 10 short years, the GNI has jumped from $1.3 trillion dollars to $2.2 trillion, an approximate increase of $918 billion dollars!

Another example of why India is a great market to enter is due to their large population size. Population in India is currently at 1.3 million with “nearly 10 million additional people entering the work force each year.”^[2] A large increase in population means more eligible consumers to market these computers to. Having approximately 65% of the population in the age range of 15-64, India is the perfect location for the computer industry. This age bracket is the target age group for computer sales. Children and seniors are not targeted computer users and thus this population size is ideal.

The large population is also beneficial since there is an increased opportunity to find qualified staff. India’s vast population of software engineers, along with low labor costs; create a winning combination for a computer manufacturer looking to enter this market.

Although discretionary income in India is relatively low, the data in exhibit one illustrates the steady increase in mobile phone and internet subscriptions. This proves Indians are tech savvy and willing to pay for technology. Therefore the market for technological private consumption items seems optimistic.

Exhibit One: Years 2006 – 2010*

*Data from database: World Development Indicators

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Exhibit One (continued): Years 2011 – 2015*

*Data from database: World Development Indicators

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