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

more likely to have been exposed to Western culture <strong>and</strong> have an affinity for Westernstyle
foods, whether produced in <strong>India</strong> or imported. 15
Religion is also an important factor that can influence the types <strong>of</strong> food <strong>India</strong>ns consume.
For example, certain meats are forbidden or strongly discouraged by Hinduism (e.g., cow
meat) <strong>and</strong> Islam (e.g., pork) (box 3.1). The <strong>India</strong>n population practices a number <strong>of</strong>
religions, but the majority <strong>of</strong> the population (81 percent) is Hindu. Muslims are the
second-largest religious group (13 percent), followed by Christians (2.3 percent) <strong>and</strong>
Sikhs (1.9 percent). 16
BOX 3.1 <strong>India</strong>n Pork Consumption a
Pork consumption in <strong>India</strong> is small for cultural <strong>and</strong> religious reasons. Pork is generally viewed as a poor man’s meat,
in part because pigs in <strong>India</strong> roam free <strong>and</strong> are viewed as feral scavengers. In addition, practicing Muslims are
prohibited from eating pork. However, pork is consumed in somewhat larger quantities in Christian communities in
the northeastern <strong>and</strong> southwestern areas <strong>of</strong> <strong>India</strong>, including in Goa, where it was introduced by the Portuguese
when Goa was a colony <strong>of</strong> Portugal. It is also consumed in hotels <strong>and</strong> restaurants in <strong>India</strong> that feature or sell
Western food, but generally not in Chinese restaurants (which are popular in <strong>India</strong>), notwithst<strong>and</strong>ing its widespread
use in Chinese cooking outside <strong>of</strong> <strong>India</strong>.
______________
a
USMEF, “<strong>India</strong>’s Pork Market:” March 2007; FAO, Country Pr<strong>of</strong>ile: <strong>India</strong>, FAO Statistical Yearbook, 2005.
Income <strong>and</strong> Expenditure
Income Levels
Most <strong>of</strong> the <strong>India</strong>n population historically has been poor. Consequently, most <strong>India</strong>ns are
very price sensitive with respect to food purchases (box 3.2). Even today, about
34 percent <strong>of</strong> the population lives on $1 per day or less, <strong>and</strong> 80 percent <strong>of</strong> <strong>India</strong>ns live on
$2 per day or less. 17 By national st<strong>and</strong>ards, however, not all these individuals are
considered impoverished; only 29 percent <strong>of</strong> <strong>India</strong>ns live below the national poverty line.
Moreover, recent economic growth has caused incomes to rise, with a corresponding rise
in spending, including food expenditures. Between FY 2003/04 <strong>and</strong> FY 2007/08, <strong>India</strong>n
per capita incomes grew 7.2 percent annually, which has allowed considerable numbers
<strong>of</strong> <strong>India</strong>ns to move into the middle class. 18
15 Singh, <strong>India</strong>: Retail Food Sector, December 21, 2006, 5; Govindan <strong>and</strong> Dhankar, <strong>India</strong>: Exporter
Guide, October 1, 2008, 5; <strong>and</strong> Bryant Christie Inc., <strong>India</strong> Research Study, January 31, 2008, 14.
16 CIA, The World Factbook: <strong>India</strong>, updated June 1, 2009.
17 UNDP, Human Development Report 2007/2008, 2007, 239.
18 Government <strong>of</strong> <strong>India</strong>, Ministry <strong>of</strong> Finance, Economic Survey 2007–08, n.d., 3.
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