Question

Explain the philosophy of a “Consumerist Economy” with suitable examples. What are the specific factors that account for Indian Consumerism?

Answer 1

Consumerism is a social and economic order that encourages the acquisition of goods and services in ever-increasing amounts. In simple words philosophy of a “Consumerist Economy” states that, if consumer has money on hands he buys goods, creating a demand, enthusing manufacturers to produce more thereby enabling growth.
For example, a budget that has provided tax benefits to people putting more money in the hands of the people promotes Consumerist Economy.

Specific factors that account for Indian Consumerism

• Burgeoning middle class, its changing values and pent up consumer demand,
• Changing women's roles, their labor participation and the changing structure of the family,
• Rising consumer aspirations and expectations across many segments of the population,
• Increased consumer spending on luxury items aided by past savings and the introduction of the credit system,
• New types of shopping environments and outlets,
• Media proliferation, satellite and cable TV, and the thriving film industry,
• Media sophistication and familiarity with English language among media
• people and a wide segment of the population,
• High degree of consumer awareness and sophistication across different segments,
• The emergence of traveling Indian consumers immigrants in the US and England , overseas workers, tourists, professionals and their exposure to world-wide consumer products,
• Strong domestic consumer goods manufacturing sector,
• Resurfacing of hedonistic cultural elements after centuries of dormant state,
• Entry of multi-national corporations into India, and
• The emergence of the rural consumer sector.