India has climbed to become the third-largest driver of growth in consumer products among emerging markets, with even more headroom for expansion, according to a new report by Bain & Company. The study reveals that despite past setbacks, ranging from complex market dynamics and fragmented traditional trade to stiff competition from budget brands, India is now offering multinational corporations (MNCs) an increasingly fertile ground for growth. Thanks to widespread smartphone usage, robust digital adoption, and financial inclusion, MNCs have managed to become top players in more than 20 product categories, including beverages, snacks, detergents, and personal care products.
Interestingly, Bain’s analysis of 30 leading MNCs with Indian operations shows that local subsidiaries are significantly outperforming their global parent companies. In fact, 19 out of these 30 firms have seen growth above the industry average between 2018 and 2023, delivering shareholder returns up to six times higher than their headquarters. However, 21 companies remain under-leveraged in the Indian market, contributing less to their global revenue compared to India’s 3.4% share of global GDP.
“India offers not just a market, but a chance to build globally impactful brands. Companies already present are reaping strong returns, while those yet to enter risk missing out on a key growth engine,” Ravi Swarup, head of Bain’s Consumer Products practice in India, said. To help companies navigate the unique challenges of the Indian market, Bain proposes a LEAP framework, a strategic toolkit focused on expanding into both mass and premium segments, customising the marketing mix, and investing in local talent and digital capabilities.