India Market Size

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India Market Size has enormous potential to become a major global force to reckon with the credit for having a huge market size in India is largely attributed to the fact that the India is the second most populated country in the world. Owing to the liberal government policies, the India Market Size has increased of late as it has witnessed the entry of new players to the Indian market scene. It is very difficult to gauge the full extent of India Market Size due to the extremely heterogeneous nature of the various elements within the country. The Indian market size can be broadly classified into four components:

  • Labor market
  • Money Market
  • Commodity Market
  • Capital Market

The Labor Market in India is among one of the cheapest in the world. Besides, there are a large number of English knowing technically qualified workforce in the country. This increases the India Market Size vastly and also makes India one of the favorite destinations for overseas companies to set up branches. The labor market consists of workforce in the entire three sectors primary, secondary and tertiary sector.

The Money Market in India deals with all the aspects related to the lending and borrowing of funds. Since the India market size is huge, performance in the country's money market depends on a variety of factors. The money market is closely connected to the foreign exchange market.

The Commodity Market comprises of exchange of goods that is estimated in terms of the domestic currency. The wholesale market and the retail market are important components of the commodity market.

Capital Market deals with all the assets of the country. Here both the government and public companies can raise short term and long term funds, depending on their requirements. The bond market and the share market come under the capital market.

Demand for consumer goods (figures in '000)

1995-96 2001-02 2005-06 2009-10 (Estimated)
Cars 276 788 1560 3466
Motorcycles 760 2599 4663 8369
CTV Regular 1785 4580 6295 9957
Refrigerators 1850 3006 4335 6774
White Goods 3437 6024 8727 13149

An increase in the demand for consumer goods means that the production requirement naturally increases. The rapid rise in the income patters of the population in India has ensured that the demand for consumer good increased at an even faster pace. Today, the numbers of people who own consumer goods are far larger than they were a decade ago. India market size has witnessed tremendous change over the last few years due to this.

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