New Delhi: The Indian Economy is witnessing a market shift from the metros to urban areas and finally to the smaller cities. As per the latest market trends, small cities are emerging as the markets of future, where the real India can bank upon and is actually experiencing growth.

With the motto, “Marketers cannot afford to ignore emerging markets of India today”, ‘Real India Conclave’ is an attempt by Jagran group and exchange4media to bring to the forefront the huge opportunities that are yet to be tapped in the emerging states in India. This initiative is aimed at revealing the potential of emerging India. It is a thematic forum and the first edition focused on India’s one of the fastest growing state- Bihar.

Acknowledging the significant contribution of emerging markets in accelerating growth of the Indian economy, Anisha Motwani, CMO, Max New York Life Insurance said that while it took the country close to 60 years to reach the USD 1 trillion GDP number, the subsequent trillion is expected to happen by 2014, a mere three years.

Motwani gave an overview of India’s growth story, the factors fuelling demand, the challenges and head wins, and the contributions of the emerging markets like Bihar in writing this growth story.

According to her, the demographics of the country skewed in favour of the youth, and the societal shift towards nuclearisation of families are the key attributes to this growth.

With 47 percent of India’s population between 15-34 years, there exists a huge potential that can be leveraged only if the youth is literate, productive and generates income. Giving a statistical presentation, Motwani proved that this potential is slowly being tapped.

“Today, 333 million young Indians are literate and are contributing to the economy. Every household that has at least one literate family member is seeing an increase in income by 67 percent. There exists a direct correlation between literacy and income, and that is why markets are doing well,” she said.

The changing family dynamics towards a nuclear set-up is also resulting in a favourable growth. With more households getting added, consumption is increased which in turn fuels demand and increases supply to meet this demand.

Motwani also referred to the growth disparities in the country, and how different income segments are slowly making use of the opportunities offered by this new, growing India.

She classified the population into four broad income quartiles, namely the below poverty line repressed income segment, the reconciled segment, consisting of people who have reconciled to their fate rather than fight harder, the resurrected segment, with the people who have defied all odds , and the new-age entrepreneurs, who have taken advantage of the underlying opportunities.

Speaking on Bihar specifically, Motwani said that an improved social sector with better health and education, development of infrastructure and law and order, which has increased investor confidence are the prime contributors to Bihar’s success.

“Even on a smaller base, you will see that the growth rate of Bihar is growing at 20 percent, higher than many other states including prosperous ones,” she said.
She also added that while emerging markets in totality contribute 17 percent to India’s GDP at present, the number can swell up once all these states begin to grow at a rate akin to that of Bihar.

Referring to the obstacles preventing this rise, Motwani pointed that rising food inflation, interest rates, and commodity prices result in suppressing demand and limiting growth. Furthermore, the reluctance to open up FDI and the lack of sufficient employment opportunities are the other key inhibiting factors.


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