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Essay - 'Consumer Power in India'

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Essay - 'Consumer Power in India'

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Essay writing has also become a tool to test you on communication skills. MBA aspirants may be asked to write essay before GD & PI. Today, you will read Essay on : 

“Consumer Power in India”

Consumers are being considered as God in India. It would not be an overstatement if it is stated that the existence of consumers makes an economy grow and prosper. Sustainability of the economy happens when the consumers make prominent choices of authentic goods and services. Since ancient civilization it has been envisaged that trade and commerce had been considered as the nerves of Indian economy. In every trade and commerce the role of consumers is indispensable. The demands of the consumers have been highlighted and thereby products and the services have been produced and modified respectively. The profit which has been generated in the economy is because of the intelligent choices and purchases made by the consumers.
 
In this scenario, it is impertinent to empower the existing consumers with their right to choose, demand, purchase and complain in case of non satisfaction. It is equally important to safe-guard these rights as an unsatisfied consumer may lead to dismantling of a production house and thereby shutting up of the particular business in a region. In order to educate the consumers the Indian government has initiated programme known as “Jago Grahak Jago” under which a consumer may approach a consumer court in order to expedite any case pertaining to non-satisfaction of a product or service. 
 
India being the largest democracy in the world also enjoys the position of being second largest populous country in the world having the population of 1.22 billion. It is 17.50% after China which is 19.40% of the world population. Although the country’s population growth may be considered as a merit but it cannot be overruled that majority of the population of our country is still under the darkness of poverty. India is currently 30% urbanized while 70% of the Indian consumers are still in rural area.
 
According to a survey, 404 million of the population are either consumers or are aspiring consumers; on the other hand 742 million are still under privileged. Out of 30% of urban population, 80% is low/lower middle class having income of Rs. 12,500 per month.15% is middle class and only 5% is upper class who has the capacity to spend on the variety of products and services.
 
Inspite of the above mentioned facts, it is also equally true that majority of our population is generating income within the economy being within the age group 18-60 years and  thereby increasing the purchasing power of the overall population. And that is the reason why India is one of the best destinations of FDI. Foreign direct investment (FDI) is direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. 
 
Starting from a baseline of less than $1 billion in 1990, a recent UNCTAD survey projected India as the second most important FDI destination (after China) for transnational corporations during 2010–2012. As per the data, the sectors that attracted higher inflows are services, telecommunication, construction activities and computer software and hardware. Mauritius, Singapore, US and UK are among the leading sources of FDI. Based on UNCTAD data FDI flows were $10.4 billion, a drop of 43% from the first half of the last year. On 14 September 2012, Government of India allowed FDI in aviation up to 49%, in the broadcast sector up to 74%, in multi-brand retail up to 51% and in single-brand retail up to 100%.
 
The choice of allowing FDI in multi-brand retail up to 51% has been left to each state.In its supply chain sector, the government of India had already approved 100% FDI for developing cold chain. This allows non-Indians to now invest with full ownership in India's burgeoning demand for efficient food supply systems. The need to reduce waste in fresh food and to feed the aspiring demand of India's fast developing population has made the cold supply chain a very exciting investment proposition. 
 
At the fag end it can be concluded that India’s population, if channelized in a positive manner wherein the government takes care of the education and employment of the population, Indians can transform the economy by being the most educated, informed and efficient consumers in the world. 
 
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