India: Effects of Tariffs and Nontariff Measures on U.S. ... - USITC

FIGURE 3.2 <strong>India</strong>: Share <strong>of</strong> per capita daily calorie consumption by
food item, average 2001–03
Other foods
33%
Rice
32%
Palm Oil
3%
Milk
4%
Sugar
7%
Wheat
21%
Source: FAO, Country Pr<strong>of</strong>iles, <strong>India</strong>, FAO Statistical Yearbook , 2005.
which represented almost one-third <strong>of</strong> <strong>India</strong>n caloric intake, likely included fruits, pulses,
vegetables, dried fruits, <strong>and</strong> processed foods.
Factors Affecting Consumption
Generally, the factors that affect food consumption in <strong>India</strong> are those that influence food
consumption globally, namely population size <strong>and</strong> demographics, income levels, food
prices, <strong>and</strong> consumer food preferences. Rapid changes in the <strong>India</strong>n economy <strong>and</strong>
corresponding changes to <strong>India</strong>n society <strong>and</strong> demographics are likely not only to increase
the amounts <strong>of</strong> traditional foods that <strong>India</strong>ns eat, but also to change the mix <strong>of</strong> foods
<strong>India</strong>ns consume, including the addition <strong>of</strong> new food types to their diets, such as highervalue
processed foods <strong>and</strong> imported food products.
Population Size <strong>and</strong> Demographics
<strong>India</strong>’s population is currently 1.2 billion, approximately one-sixth <strong>of</strong> the world’s
population <strong>and</strong> second in size only to China. The population is spread across 28 states
<strong>and</strong> 7 union territories (UTs). From MY 2003/04 to 2008/09, the <strong>India</strong>n population is
estimated to have grown approximately 8 percent (table 3.2). Such rapid population
growth translates into a much larger consumer market for food products, whether
traditional <strong>India</strong>n staple foods or foods new to the <strong>India</strong>n diet. Furthermore, <strong>India</strong>’s large
population is young <strong>and</strong> ethnically diverse. <strong>India</strong>’s median age is 25, which is young even
compared to that <strong>of</strong> other large developing countries, such as China <strong>and</strong> Brazil. 14 The
changing demographics <strong>of</strong> the <strong>India</strong>n population will likely have an impact on the types
<strong>of</strong> foods <strong>India</strong>ns eat. Young people, especially young pr<strong>of</strong>essionals in urban areas, are
14 China <strong>and</strong> Brazil have median ages <strong>of</strong> 34 <strong>and</strong> 29, respectively. CIA, The World Factbook: <strong>India</strong>,
updated June 1, 2009; CIA, The World Factbook: China, updated May 14, 2009; <strong>and</strong> CIA, The World
Factbook: Brazil, updated May 14, 2009.
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