About Insights India
Insights India is McKinsey & Company’s proprietary toolkit that helps companies understand the growth potential of India’s heterogeneous geographic markets at the state, city and district level. It is designed to assist businesses to tailor their investment decisions such that they capture a disproportionate share of the pie in India’s rapidly changing economic geography.
Built over 18-24 months, the genesis of Insights India lies in the research undertaken by the McKinsey Global Institute on the economic implications of urbanisation in India, published in 2010. Despite data paucity constraints, the toolkit’s unique approach combines an understanding of the macroeconomic issues at a national level, with micro-level insights on the economic and income potential of states, clusters and cities. In addition, it also incorporates the discontinuities resulting from the development of flagship infrastructural projects. For the present this work builds on a base case scenario in which India is expected to grow at annualised rate of 6.4 percent from 2014 to 2025.
The Insights India toolkit adopts a fact-based approach and consists of proprietary models, datasets and applications to help marketers and policymakers alike to make investment decisions and reallocate resources in their endeavors to grow market share and improve economic growth respectively. Its econometric models comprise the following metrics at a state, district, cluster and city level cut across urban and rural areas from 2005-25:
1. Gross Domestic Product
3. Income distribution
Our proprietary datasets can be customised to create a series of scenarios suited to meet specific client requirements and are supplemented with McKinsey’s understanding of India’s business environment in the context of its political economy. For example, we can work with clients to estimate the demand for a particular product category, estimate infrastructure requirement, or simply provide access to our proprietary dataset that could be used as inputs for various demand estimation companies may wish to undertake.
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The toolkit predominantly uses public data provided by agencies such as the Central Statistical Organisation, the Reserve Bank of India, the National Statistical Survey Organisation, and the State Directorates of Economic and Statistics.
Insights India has been developed using a top-down modeling approach to ensure that the final output is the end product of a series of interlinked economic and statistical models, cascading from the national level to states, districts and cities. These inter-linkages are imperative to enable appropriate modification of the assumptions and yet maintain the overall consistency across the output.