Jaipur, Surat will see a rise in household income to Rs 80,000 crore by 2018
Both cities will cross the Rs 80,000 crore threshold within one to two years, with total consumption levels to reach 75%-80% of metros like Pune and Ahmedabad.
Two new metros, Jaipur and Surat, will see a rise by 2018, having a household income of over Rs 80,000 crore. These are projected to record real GDP growth of 8.7% and 10.3% respectively from 2015-20, relative to metros’ 8.3%, according to an Ernest & Young (EY) report. As a result, both cities will cross the Rs 80,000 crore threshold within one to two years, with total consumption levels to reach 75%-80% of metros like Pune and Ahmedabad.
Source: EY India
The report titled ‘India’s growth paradigm: How markets beyond metros have transformed’ identifies 42 new-wave markets, which are expected to grow at 8.9% as compared to the 8 metros that are expected to grow at 8.3% CAGR in the 2015-20 period.
Source: EY India
Ashish Pherwani, Media and Entertainment Advisory Leader, EY India says, “Non-metro growth is out-stripping that of metros in India. There are clear cases of unmet demand in India’s top 50 cities in certain sectors. This provides a huge opportunity for various sectors to both widen and deepen marketing strategies, and effectively tap into one of the world’s largest earning populations.”
The report also notes the rise of 8 new half metros, with household income exceeding Rs 40,000 crore by 2020. It also highlights 13 new-wave cities that represent a high-growth opportunity, but are largely untapped. These include Patna, Raipur, Warangal, Gwalior, Dehradun, Allahabad, Rajkot, Vishakhapatnam, Jodhpur, Vijaywada, Ranchi, Kota and Jabalpur.
Additionally, the top 23 untapped markets, as identified by the report, are all new-wave cities. These 23 markets represent 19% of metros’ household income-but only 12% of retail outlets 15% of telecom centres and 17% of malls, notes the report.
The report further considers the potential of individual markets across each sector – FMCG, Retail, fashion and durables, Auto, Telecom and DTH, E-Commerce, Education, BFSI, and Real Estate. It delves into the expected ad spends across each sector, and highlights the top-10 untapped markets across each sector.