China India and The Global Market

CHINA INDIA AND THE GLOBAL MARKET



Introduction:

India overtook China as the world's most populous country, According to the World Population Review report India's population stood at 1.428 billion against China's 1.425 billion. This event presents opportunities and challenges as it must ensure that young people have access to education, healthcare, and employment. But China's population growth is declining because of its governance policies. 

Global market:

Now discussing the consumer status in the world market for both countries. The global consumer class is defined as those spending more than $12 in a day and if we see the numbers only 473 million people in India lie in this category and the rest lie outside but in the case of China about 899 million people lie in global consumer class category which is almost double to that of India.

Key Points:

Despite India and China being two important markets in the world economy they have three major points of difference.

1. Size of consumer class: China has almost double the number of consumers in the global market but in 2023 their growth is comparable, that is China's consumer class will increase by 36 billion and India's consumer class will increase by 31 billion. However, China will have a larger consumer class than India in the next two decades. But China will easily cross the line of 1 billion global consumers around 2027/28.

2. Demography: China's consumer class is older with a median age of 39 years while India's consumer class is young with a median age of 30 years only. By 2030 India will add more than 360 million young consumers below the age of 30 years and will attain the largest ' young market in the world'. Companies nowadays bring advertisements targeting the young population. By 2030 India will be the home of one-fifth of young consumers.

3. Geography: China's consumer class is urban while India's only half of the consumer class is urban. China's 559 million consumers are living in urban areas. Despite growth in the number of India's consumers is harder to reach Chinese consumers.

Conclusion:
We are much behind China in terms of geographical outlook but if we focus more on urbanization then it will be easy to convert the major rural population to an urban global consumer population. We can see the upcoming growth as per the recent news Apple opened its 2 stores in Delhi and Mumbai. These are tiny but good steps towards becoming a global market hub and as we increase urbanization more and more major companies like Mircosoft, Google, Tesla, and others will aggressively reach India.  




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