Amid sluggishness in demand in the developed world, the Asian Development Bank (ADB) has said that emerging middle class in India and China could become the next leading global consumers.
"The emerging middle class consumers of Asia, especially in the PRC (People's Republic of China) and India, can become the next leading global consumers, and assume the role that the American and European middle classes have traditionally played in the world order," ADB said on Tuesday.
In a report, the Asian Development Bank (ADB) noted that developing Asia might account for 43 per cent of worldwide consumption by 2030.
According to the multilateral agency, the demand for consumer goods in the developed world -- such as Europe, Japan and the US -- is likely to be sluggish.
Such a trend would be due to households in these countries are ‘engaged in a long and painful process of deleveraging — increased saving in an effort to reduce their high levels of debt and to rebuild lost wealth,’ it added.
ADB noted that policy makers in Asia should take decisive steps to generate high-quality and productive job, if the region is to sustain economic growth seen in the past two decades.
"Asia's remarkable 6.1 per cent yearly growth in real gross domestic product per capita (in 2005 purchasing power parity terms) between 1990 and 2008 was led by the People's Republic of China (9.1 per cent), India (4.9 per cent), and the Republic of Korea (4.6 per cent)," the report said.
The region is grappling with changing demographics, that includes expanding middle class as well as ageing societies. Many of the new jobs that have been created in Asia are low-cost, low-wage manufacturing positions.
ADB's Chief Economist Changyong Rhee said the percentage of workers in informal employment in Asia remains sharply higher than in most other regions.
"Quality jobs are important for reducing poverty and income inequality, and for promoting social cohesion and political stability," Rhee added.