India will present a tremendous market opportunity over
the next decade in key areas such as energy, water and
transportation, says Dr Gopichand Katragadda
To effectively monetise products
and services requires an in-depth
understanding of the markets we serve.
At Tata, our markets and presence are global.
This article focuses particularly on the
opportunity in India over the next decade.
- Energy: India would need to generate
0.5 KW of electric power per person to
provide reasonable level of opportunities
to its population. Based on current
projections for the population in 2025,
India needs to increase its generation capacity 2.5 times, from roughly 280 GW to
710 GW. The energy requirement of 0.5 KW
per person is roughly half of the European
average and a quarter of the US average.
Transmission and distribution capacity
should be upgraded accordingly [Ref i].
- Water: India needs to double capacity of
usable water from 1,000 to 2,000 cubic
metres per person per year. Less than
1,700 cubic metres of water per person per
year is considered as being water-stressed.
Currently, USA provides 8,000 cubic metres
of water per person per year to its citizens.
Also, India would need to double the
sewage treatment facilities in urban areas to
even meet its current needs [Ref ii].
- Transportation: It is estimated that India
will add 1,000 passenger and freight
locomotives over the next 10 years, and
the passenger and freight aircraft market
will grow to be US$100 billion plus by 2025 [Ref iii].
Regarding road transportation, the Indian
government aims to make automobile
manufacturing the main driver of the
Make in India initiative, as it expects the
passenger vehicles market to triple to 9.4 million units by 2026 (as highlighted in the
Auto Mission Plan 2016-26). Efficiency,
emission control and light weighting will
continue to drive the next generation of
vehicles in India.
- Healthcare: India will need to grow from
4 percent of GDP healthcare spend to 5.5
percent of GDP as per the CII-McKinsey
report on healthcare. The report presents
the vision for India’s healthcare with clear
goals for 2022 [Ref iv].
- Food security: India will have to develop
innovative, accessible, diversified food
plans and supply chains to enable at least
around 2,100 Kcal per capita per day in
the diet for the urban population and
2,400 Kcal per capita per day for the rural
population [Ref v].
- Products and services for the digital
consumer: It is expected that by 2030
more than a billion Indians will be online
[Ref vi]. Defining digital consumers as
connected individuals who leverage their
inter-connectivity as much as their internet
connectivity for purchasing products and
services, this is an area ripe for disruptive
innovation. From mobile wallets to digital
lockers, digital consumers will redefine
commerce as we know it.
India has the ability to create a
unique spot in innovation history to meet
its own market requirements using its
cultural advantages of frugality and
sustainability. In emerging research areas at
the intersection of biology, computing and
materials, industry R&D should double and the
government should provide direct R&D grants
- Development, Energy Security and Climate Security: India’s Converging Goals; Rajan Gupta
and Harihar Shankar, Los Alamos National Laboratory, Los Alamos, New Mexico, USA; and
Sunjoy Joshi, Observer Research Foundation, New Delhi, India
- India’s Water Crisis: Causes and Cures, an interview with Kirit S Parikh by Sonia Luthra and
Amrita Kundu; The National Bureau of Asian Research, August 2013
- India Transport Report: Moving India to 2030; National Transport Development Policy
- India Healthcare: Inspiring Possibilities, Challenging Journey; by Confederation of Indian
Industry (CII) and McKinsey & Company, December 2012
- Estimating the Range of Food-Insecure Households in India; Sharad Tandon, Maurice R.
Landes; United States Department of Agriculture, May 2012
- The Great Race: Online Retailing in India; The Economist, March 5th 2016