Leveraging economic growth for packaging in IndiaMWV India looks to thrive on fast growing middle-class consumersManufacturing is expected to be a major driver of economic growth in India — especially since the launch of Prime Minister Narenda Modi’s new campaign, ‘Make in India.’ The aim is to accelerate progress toward a new era of high-quality Indian manufacturing and transform the country into a global manufacturing hub. ‘Make in India’ is directed at developing the market and encouraging global investments, leveraging public-private partnerships and initiatives that improve the ease of doing business in India.
Strong economic growth also indicates potential for an increased demand in higher-quality packaged goods. MWV’s added capacity in India aims to develop high-quality solutions for the unique needs and scale of the Indian marketRakesh Tripathi, director of strategy at MWV India tells Packaging South Asia that the Indian economy is expected to grow at 6.4% this year, and as it continues to return to higher single digit growth, manufacturing offers significant opportunities for job creation and economic growth. Among the many advantages of manufacturing in India are cost competitiveness and a sizeable working age population, but according to Barron’s, “A disproportionate share of labour works in agriculture, which contributes to around 15% to GDP. Services, which account for 60% of GDP, only employ one-quarter of the labour force.” This drive to grow manufacturing will employ more workers, contribute to the rise in disposable income and drive lifestyle changes for the average Indian citizen, Tripathi says.
Strong economic growth also indicates potential for an increased demand in higher-quality packaged goods. India is the world’s sixth-largest packaging market, valued at US$ 24.6 billion with a growth rate of more than 15% annually — more than double the global average which indicates a very strong future for packaging in India at least.
Tripathi says, “Our global Packaging Matters study data reveals that packaging plays a major role in product satisfaction for Indian consumers across every product category. Indian shoppers prefer to purchase products in-store, where the look and feel of packaged goods can sway consumer opinion. Packaging Matters shows that 65% have tried a product because the packaging caught their eye on the retail shelf, and more than half (55%) have purchased a product again because of its packaging.”