positive
Recently
India’s consumption revival gathers pace as rural incomes and tax cuts spark spending
No Image
Rural incomes, tax cuts and festival demand are powering India’s consumption revival, hinting at a shift to consumption-led growth.
India’s consumption up-cycle is breaking out, driven by rising rural incomes, recent tax-cuts, GST rate reductions and strong festive-season demand. Retail sales, auto bookings and consumer-durables demand are showing signs of durable momentum. Analysts say the trend is visible in multiple data-points and may shift the growth model from investment-led to consumption-led. Although markets have partially priced this in, further upside depends on income flows and inflation staying manageable.