Sometime this spring, a major geopolitical shift is coming: India will surpass China as the world’s most populous country. It’s a bit ahead of schedule—in fact, the wonks who count such things say it may have already occurred—but experts have seen this milestone coming for years, so it’s not exactly a surprise.
What could be surprising, however, is what this change means for American companies. That’s especially true for the home furnishings industry, which continues to get the bulk of its products from China but is frantically moving to shift its sourcing and manufacturing to other Asian nations. With the largest global population and an economic infrastructure gearing up for increased export, India stands to gain the most from this sourcing diaspora. It’s why a headline this week in The New York Times asked: “Will This Be the ‘Indian Century’?”
India’s population will clock in at about 1.4 billion people in 2023, and according to U.N. forecasts, that number will continue to climb to over 1.5 billion by 2040, and even higher over the following 20 years. In the meantime, the organization predicts that China’s totals have peaked and will begin a slow-but-steady drop over the rest of the century, falling below the 1 billion level sometime before 2080.
For India, the opportunities are enormous … and so too are the challenges. Its infrastructure, economic systems and growth of the middle class are all very much behind China’s. But its demographics portray a nation with a young and expanding workforce, and that’s good for its business sector.
That’s why we’re likely to see much higher totals of exports from India, including in home furnishings. India already is the No. 2 supplier of home textiles to the U.S. and has a vibrant export sector in gifts, decorative accessories, tabletop and rugs. But it lags behind in furniture, and significantly behind in consumer electronics and household appliances. Courtesy: www.businessofhome.com