Consumerism and consumer protection in India

The Indian consumer market has never had it better. Higher disposable incomes, the development of modern urban lifestyles and an increase in consumer awareness have affected buyer behaviour — in cities, towns and even rural areas. According to a 2007 report by McKinsey & Co., India is set to grow into the fifth largest consumer market in the world by 2025. Buying power has also expanded to new consumer segments — be it the youth or the urban woman. The vast rural hinterland of India is beckoning and the sheer numbers make it impossible to ignore. In this scenario, creating consumer loyalty is now a whole new challenge.

These demographic shifts have also created the need for leaders who can keep pace with change and identify with and predict future demand. The Spencer Stuart roundtable involved a group of key leaders in the consumer space and search consultants who shared their insights and experiences on the dynamics of domestic demand in India and the resulting implications for talent needs and corporate leadership. In a developing country like India where the incidence of poverty and unemployment is very high and the level of literacy is very low, the people face a volume of problems, particularly in the context of consumer related issues. The process of development coupled with increasing globalization across the country has enabled consumers to realize their increasingly important role in society and governance. However, concentration of the market power in the hands of a select few has affected consumers’ behaviour over time. In a developing country like India where the incidence of poverty and unemployment is very high and the level of literacy is very low, the people face a volume of problems, particularly in the context of consumer related issues. Unlike in the developed world, consumers in these countries have not been able to play a greater role in the development process. In this paper an analysis has been to explore the consumer protection and consumerism in India. Unlike in the developed world, consumers in these countries have not been able to play a greater role in the development process. The process of development coupled with increasing liberalization and globalization across the country has enabled consumers to realize their increasingly important role in society and governance. However, concentration of the market power in the hands of a select few has affected consumers‟ behaviour over time. In this paper an attempt has been to explore the consumer protection and consumerism in India with the help of pre and post independence scenario of consumerism.