The value of India’s top brands has dropped 2% over the past year, due to a decline in value of state-owned banks and consolidation, according to the latest BrandZ Top 50 Brands report.

The ranking, released by WPP and Kantar Millward Brown, shows that the top 50 brands are now worth $90.5bn, with local Indian brands (38 of the top 50) increasing in value to 32% since 2013 and global brands locally growing 19%.

HDFC bank topped the ranking for the third consecutive year, having grown 15% since last year with a brand value of $14.4bn.

Financial brands made the largest overall value contribution, closely followed by auto and consumer goods, with the airline sector making its first appearance in the ranking.

Recent localised growth is credited to Indian entrepreneurship, innovations and a popularity for locally grown brands, as well as increased internet access and mobile penetration.

“The 2016 BrandZ study shows the extent of change India has witnessed and its continuing potential,” said The Store WPP chief executive officer for EMEA and Asia David Roth.

“India has relaxed ownership rules across key industries and is making doing business in India easier, parliament has taken unprecedented steps to replace a complicated mix of national, state, and local taxes with a single Goods and Services Tax (GST). India does branding India’s way.

“This country is so multifaceted, it needs to be viewed through a wide-angle lens, which is what this report and its insights provides and why it’s of such value to marketers building valuable brands in India.”

Kantar Millward Brown managing director for South Asia Dinesh Kapoor commented that, over the past year, brands have had to work hard to hold on to their top 50 position.

He said that 20 brands have witnessed a drop in their ranking, while brands that have managed to sustain their ranking over the past two years have only been able to do so by increasing their brand value by over 35%.

“For these brands, it is critical that they identify fundamental insights about consumer needs and also assert their difference from the competition,” added Kapoor.

“Innovation helps create the perception of difference while meaningfully different brands build salience with great creative advertising and a strategic media mix. Brands that are meaningful, different, and salient inspire love. Love has a multiplier effect that helps accelerate brand value growth.”

WPP India country manager Ranjan Kapur added that brands these days need to find ways to support the national agenda and develop a more modern, prosperous and equitable society.

“Their focus needs to remain on building trust amongst consumers by connecting with the country’s sense of responsibility,” said Kapur. “Successful brands in India help in building India as a nation.”