India is a giant market. An estimated 300 million people belong to what is called the middle-class.


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International Business

Case Studies
CASE STUDY (20 Marks)
India is a giant market. An estimated 300 million people belong to what is called the middle-class. ‘Capitalism Consumerism’ is a characteristic of this category. Another 700 million consumers exist in rural India. Each of the above segments makes for bigger population than the rest of the world, except China. Irrespective of what some commentators have said, Indian firms are successfully competing across entire value-chains spanning sectors. With more millionaires living in rural areas than in urban, companies are realizing the existence of huge untapped market. Appropriately several banking, FMCG, healthcare, automobile, consumer durable companies have launched innovative strategies and products tailored for them. Among these are the Unilevers, ITC, ICICI Bank, State Bank of India, P&G, LG, Samsung, Hero Honda, Maruti Suzuki, Tata Motors, etc. The transformation in India in the early years of the 21st century is remarkable! Wherever one goes, in remote villages or urban townships, one can see thousands of self employed young men and women trying to learn more of the new skills for employability in modern-day complex businesses.

Answer the following question.

Q1. What do you understand by the term ‘Consumerism?’ Explain its significance in the context of international trade.

Q2.Keeping in view the rate at which the Indian economy is growing, Indian MNCs should concentrate on consolidating their operations at home instead of thinking of expanding in foreign markets. What are your views in this regard?

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