Embrace India’s Rich Tapestry
the New India, aspirations are rapidly converging between urban and rural areas thanks to the internet and smartphones
INDIA TODAY OFFERS confluence of economic growth, a vibrant consumption landscape, and a diverse workforce. The World Population Review, an independent organisation, estimates that about one in every six people on the planet live in India. What awaits us are opportunities to shape the future as we marshal new ideas with a resolve for a resil- ient and better tomorrow.
The world continues to grapple with the widespread socioeconom- ic consequences of post-pandemic recovery, fluctuating commodity prices, geopolitical tensions, the conflagration in the Middle- east, and the climate emergency. Oper- ating within this dynamic world, as organisations adroitly navigate the Black Swans and Grey Rhinos, I envisage the following opportu- nities that will set the agenda for the next five years.
Evolving consumer needs
India offers a rich tapestry of consumers— distinct, different, and varied— residing in sprawling cities, thriving towns, and vibrant villages. About 65% of our popula- tion lives in rural areas.
India is home to the largest GenZ population, which is ex- posed to a plethora of brands. It is eager to spend but also discerning when making purchase decisions. Besides, over 10% of the popula- tion is estimated to be aged 60 and above. The rapid transformation of the consumer landscape offers a diverse, aspirational consumer base in urban and rural India, combined with GenZ and ageing populations.
On the infrastructure front, between 2018 and 2022, India added 10,000 km of highway annually; 29 km of roads are built every day; and in the last nine years, the number of operational airports has doubled.
In this situation, brands need to embrace the varied preferences through localisation and personali- sation of their product offerings as the consumption habits of Indians change every few kilometres. Or- ganisations would need to expand the nutritional profile of their portfolio by combining science with nutrition, offering wholesome food, introducing plant- based protein, healthy snacking, healthy ageing products, and incorporating healthy ingredients.
Another feature of this New India is that aspirations are rapidly converging between urban and rural areas thanks to the internet and smartphones. Consider this: India has 1.2 billion mobile users and 750 million internet users, per a Deloitte study, and monthly transaction volumes on the Unified Payments Interface ( UPI) have crossed 11 billion. With the second
BRANDS MUST EMBRACE THE VARIED PREFERENCES THROUGH LOCALISATION AS THE HABITS OF INDIANS CHANGE EVERY FEW KILOMETRESBY
online market in the world and the cheapest data rates, India offers a growing fintech market. However, we need to be mindful of the security of our digital assets and cybersecurity.
Skill development
To turn India’s demographic advan- tage into an economic advantage, training and education must focus on “employable” skills, aligning with future industry demands. All the more so because the Fourth Industrial Revolution and advances in technology are transforming jobs that demand new skills.
By imparting AI skills across the value chain and investing in research and development through- out the workforce, the food process- ing sector can help India stay at the cutting edge of the value chain.
Elsewhere, too, there have been significant changes. The workplace has begun its transformational journey. Inclusion and diversity will be reflected not only in boardrooms but in all aspects of business.
AI as ‘value- added’ activity
We are on the cusp of a transfor- mative era in technology. AI and Generative AI have spurred tech- nological innovation. A report by online job portal TeamLease Digital states that India is home to 16% of the global AI talent pool. The adop- tion of AI in line with the vision for ‘ Make AI in India’ and ‘ Make AI Work for India’ can positively impact people across sectors like agriculture, manufacturing, and healthcare. A report by IT industry association NASSCOM estimates that AI adoption is poised to add $ 500 billion to India’s GDP by 2025.
Thus, the integration of AI could herald a significant value- added activity. AI—when used in the FMCG sector for sourcing raw materials, customer engagement, supply chain, product development, logistics, sales, and distribution— can significantly drive business strategy.
However, we should not be com- pletely swayed by techno- optimism. To harness the power of technology for good, it would be imperative to bring accountability and ensure that no one is left behind.
Generative AI creates content that demands judicious execution.
We need to be cognizant that mali- cious actors can spread fake news, damage reputations, and manipu- late public opinion. This requires ef- fective detection, ethical guidelines, and responsible deployment.
A force for good
Climate change is rapidly intensify- ing. The United Nations Environ- ment Programme is looking to address what it calls the “triple planetary crisis of climate change, nature and biodiversity loss, pollution, and waste”. The recently convened COP28, too, was a step in this direction.
Environmental sustainability must be embedded into business strategies to make responsible choices, create a road map to regu- larly assess impact, and move with speed to address emissions.
The definition of organisa- tional performance will undergo a paradigm shift in terms of how we measure progress and value contributions. Moving past the sole focus on financial metrics, organisations will be expected to demonstrate “performance with a purpose”. This reflects the zeitgeist of an evolving society. The “new vanguard” would need to balance audacious strides with prudence, seize opportunities, and catch silver linings.