Page 67 - Nuvama | IC Report 2023

INDIA: THE 5D ADVANTAGE

to use solar energy to generate green hydrogen, which will be instrumental to premiumisation of consumption, which is already visible in FMCG
in ‘greenifying’ the economic activity on a far bigger scale. and automobiles—in the latter, the youth are clearly preferring SUVs
over small cars.
This manufacturing-infrastructure-energy trinity would secure a long
expressway for the country’s growth. Not only will this prise open Savings patterns too are evolving alongside. Historically, household savings
immense business opportunities, but also accelerate job creation and in India gravitated towards physical assets (real estate, gold) or debt
drive urbanisation. These urban centres afford better health, education instruments (bank deposits, government bonds), with equities largely
and entertainment facilities to residents, promote higher participation of overlooked as a forsaken child. But that’s changing rapidly. The equity cult
women in the workforce and spur an entrepreneurship culture—so critical is spreading even to tier-2 and tier-3 cities, evident in the 10x surge in
to innovation and experimentation. equity AUMs over the last eight years. This is deepening capital markets
and facilitating raising of risk capital by businesses.
Households, both as consumers and savers, too would move in lockstep in
this transformation. The youth bulge, rising incomes and rapid urbanisation In this part of the book, we shed light on the key opportunities that
is already engendering new spending and savings behaviours. Unlike together make for a vantage point from where to behold this kaleidoscope
India’s ‘Midnight’s Children’, the ‘Liberalisation Offsprings’ – millennials of opportunities that awaits India’s citizens, businesses and investors.
and Gen Z – are more confident of their incomes, better informed, more From this viewpoint, India’s 5D Advantage appears to be a gift
aspirational and brand-conscious, and less price-sensitive. This is leading that keeps giving.

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