Traditionally, Indians always wanted to own things and renting was considered as wastage of money. This mindset however, has started to take a drastic turn as online rental platforms have started to crop up at a rapid pace. The boom in this industry can be attributed to the fact that in the last three years, around 100 online rental service providers have come up to cater to the varied demands from bikes and cars to books , clothes , and even household commodities such as table lamps and beds. However, on the flip-side of this booming rental economy is the monumental slump that the manufacturing sector is experiencing.
Manufacturing rates slumped to a dismal growth rate of only 0.6 percent in the first quarter of the year 2019 from 3.1 percent during the fourth quarter of the year 2018. Though the rental economy is still much smaller than the manufacturing sector, the shift in traditional habits of owning assets to renting them can be attributed to the average age of India’s population and the migration patterns among the youths to move to tier I cities for better job opportunities.Thousands of such youths are now using online renting and sharing services to hire an array of products – furniture, consumer appliances, vehicles, designer wear, and even art pieces.
The global rental economy was estimated to be around 115 billion USD in the year 2016 out of which India contributed around 10 percent.