Mint Explainer: How sustainable is India's rural consumption boom?
1 month, 3 weeks ago

Mint Explainer: How sustainable is India's rural consumption boom?

Live Mint  

India’s consumer goods giants found an unexpected saviour this past quarter: rural demand. The periodic labour force survey data show a jump in women’s participation in economic activities in rural India since the Covid-19 pandemic. The easing of labour law provisions by some states to allow women to work night shifts also contributed to raising their participation in economic activities across rural and urban areas. It led to greater demand for labour for agricultural and related activities, all of which pay higher wages than those offered for Mahatma Gandhi National Rural Employment Guarantee Scheme jobs. Despite the Reserve Bank of India's tightened norms on personal and unsecured loans over the past year, rural demand for goods like two-wheelers has remained resilient.

India Activities Women Rural Economic Monsoon Transfers Rural Areas Consumption Demand Cash Households Singhal Rural India Rural Demand Rural Households Bhanumurthy Cash Transfers Economic Activities  indias  higher  activities  boom  rural  transfers  women  mint  monsoon  demand  explainer  consumption  households  sustainable  economic  cash

History of this topic

Mint Primer: Why consumer demand needs a quick revival
6 days, 7 hours ago

Mint Primer: Why consumer demand needs a quick revival

Live Mint  

In the second quarter of the current fiscal, manufacturing growth slowed to just 2.2% from 7% in the first quarter. This pulled down industry’s contribution to the gross domestic product growth significantly, causing overall economic growth to tank. In the second quarter, India’s GDP growth fell sharply to 5.4% as against 8.1% registered in the same period a year ago. …

DC Edit | Fall in consumption signals economic slump lies ahead
6 days, 12 hours ago

DC Edit | Fall in consumption signals economic slump lies ahead

Deccan Chronicle  

The Indian economy is likely to record the slowest growth in the last four years at 6.4 per cent in the next financial year 2024-25, according to the first advance estimates released by the government on Tuesday. The growth in the manufacturing sector, constrained by weak exports and slowing global demand, is expected to muted at 5.3 per cent from …

India’s household consumption survey doesn’t feed public policy all that well
1 week, 6 days ago

India’s household consumption survey doesn’t feed public policy all that well

Live Mint  

India’s government recently released the findings of its 2023-24 survey of household consumption expenditure and expressed satisfaction at the seeming narrowing of spending gaps in society at large and between rural and urban populations. However, we must not set too much store by the monthly per capita consumption expenditure figures of this sample survey. India’s free foodgrain scheme may explain …

New consumption survey reveals the cracks in the economy
2 weeks ago

New consumption survey reveals the cracks in the economy

Live Mint  

The Indian economy has grown steadily, but the lack of momentum in consumption and the impact of high food inflation have not gone unnoticed. The fact sheet of the latest Household Consumption Expenditure Survey, conducted between August 2023 and July 2024, confirms the lacklustre growth in consumption spending and a marginal shift from non-food items to food items due to …

Consumer goods companies go full throttle on rural hiring
2 weeks, 3 days ago

Consumer goods companies go full throttle on rural hiring

Live Mint  

New Delhi: India’s consumer goods companies are on a hiring spree to cater to the emerging clout of the rural buyer, who has been the sector’s saving grace this year amid rising material costs, shrinking margins, and increasing competition. Mumbai-based Godrej Consumer Products, for instance, has increased hiring in rural areas alongside introducing smaller and more affordable packs across key …

India’s rural-urban consumption gap narrowed in 2023-24, govt survey says
2 weeks, 4 days ago

India’s rural-urban consumption gap narrowed in 2023-24, govt survey says

Live Mint  

New Delhi: The average monthly per capita consumption expenditure in India saw significant growth in 2023-24, fuelled by higher spending across rural and urban households and a narrowing consumption gap between the two, according to data released by the Ministry of Statistics & Programme Implementation on Friday. "When ranked by MPCE, the increase in the average MPCE in 2023-24 from …

Indian Economy To Recover In Q3 As Rural Demand Continues To Climb, Says State Of The Economy Report
Trending News
3 weeks ago

Indian Economy To Recover In Q3 As Rural Demand Continues To Climb, Says State Of The Economy Report

ABP News  

India’s gross domestic product growth is expected to make a comeback in the third quarter of the current financial year, the latest State of the Economy report by the Reserve Bank of India revealed. This revival is being backed by robust festive activity and a consistent upswing in rural demand, the report authored by RBI staff including Deputy Governor Michael …

India Q2 GDP data today: From rural demand to govt capex—here are five key indicators to watch
1 month, 2 weeks ago

India Q2 GDP data today: From rural demand to govt capex—here are five key indicators to watch

Live Mint  

India Q2 GDP data today: The Indian economy likely moderated to 6.5 per cent in the July-September quarter of the current fiscal due to an uneven performance across sectors and a decline in private consumption, especially in urban areas amid high food inflation. India Q2 GDP: Here are five indicators to watch 1.Rural consumption Private consumption rebounded at 7.4 per …

Mint Explainer: Why urban India is spending less
1 month, 3 weeks ago

Mint Explainer: Why urban India is spending less

Live Mint  

Urban India’s shopping carts are losing their heft. Read this | Q2 results: How urban slump, input costs threw FMCG off gear At Maruti Suzuki India, the country’s largest carmaker, the slowdown is unmistakable. This double whammy is creating a demand shortfall in urban and especially metro areas, said Varun Berry, Britannia’s vice chairman and managing director, during the company’s …

Mint Explainer: How sustainable is India's rural consumption boom?
1 month, 3 weeks ago

Mint Explainer: How sustainable is India's rural consumption boom?

Live Mint  

India’s consumer goods giants found an unexpected saviour this past quarter: rural demand. The periodic labour force survey data show a jump in women’s participation in economic activities in rural India since the Covid-19 pandemic. The easing of labour law provisions by some states to allow women to work night shifts also contributed to raising their participation in economic activities …

Rural consumption revival pushes digital demand in small towns
1 month, 4 weeks ago

Rural consumption revival pushes digital demand in small towns

Live Mint  

Indians in smaller towns are spending more online than their urban counterparts on the back of a much-awaited revival in rural demand. Festive season spending patterns indicate a revival in semi-urban and rural consumption demand, with smaller cities seeing a significant rise in spending. Urban consumption growth in the September quarter fell sharply to 2.8% from 10.1% in the March …

Mint Primer: Why the urban middle class has cut spending
2 months, 1 week ago

Mint Primer: Why the urban middle class has cut spending

Live Mint  

The second quarter FY25 results of bellwether consumer companies such as Nestle India, HUL and Maruti Suzuki have revealed an urban consumption slowdown. According to the finance ministry’s Monthly Economic Report, volume growth in the fast-moving consumer goods sector has dropped from 10.1% in Q1 to 2.8% in Q2. Both Nestle India and HUL struggled to post a flat revenue …

India's Q1 GDP: Private consumption lifts mood
4 months, 2 weeks ago

India's Q1 GDP: Private consumption lifts mood

New Indian Express  

NEW DELHI: The GDP growth slumped to a 15-month low with 6.8% real rate of growth in the first quarter of 2024-25. As per Gaura Sen Gupta, economist, India First Bank, the growth is likely led by rural demand with improvement in labour market conditions. High frequency indicators for urban demand like FMCG sales volume and passenger vehicle sales growth …

Rural-Urban Consumption Dynamics in India
7 months ago

Rural-Urban Consumption Dynamics in India

Deccan Chronicle  

Over the past decade, India has witnessed a notable rise in consumption spending in both rural and urban areas, indicating a shift in economic dynamics and lifestyle choices. Furthermore, the changing food habits of the Indian populace have contributed to the evolving consumption patterns observed in both rural and urban areas. In conclusion, the equivalent rise in consumption spending in …

India's Rural Demand Surpasses Urban Markets in FMCG Growth
8 months, 1 week ago

India's Rural Demand Surpasses Urban Markets in FMCG Growth

Deccan Chronicle  

Chennai: Rural demand for packaged consumer goods outpaced urban markets for the first time in five quarters, while the FMCG industry witnessed 6.5 per cent growth in sales volume in the March quarter, according to NielsenIQ. On the other hand, urban markets reported a 5.7 per cent year-on-year rise in demand and the growth was slower than the December quarter’s …

Real GDP growth may hit 8% this fiscal year, signals FinMin
9 months, 3 weeks ago

Real GDP growth may hit 8% this fiscal year, signals FinMin

The Hindu  

India’s economy may well end up growing by about 8% this fiscal, outstripping the 7.6% real GDP growth projected by the National Statistical Office, the Finance Ministry signalled on Friday, citing the continuing momentum in economic activity in the ongoing final quarter of 2023-24. Despite risks such as “hardening crude oil prices” and “global supply chain bottlenecks to trade”, the …

SBI Research backs NSSO report, credits Modi govt for decline in India's consumption inequality
10 months, 2 weeks ago

SBI Research backs NSSO report, credits Modi govt for decline in India's consumption inequality

Op India  

On Tuesday, a research report published by the State Bank of India corroborated the findings of the Household Consumption Expenditure Survey, which was conducted by the National Sample Survey Office. Decadal changes in MPCE show decline in consumption inequality, graphic via SBI Research “Rural Poverty has thus staged a significant 440-basis point decline since 2018-19 and Urban Poverty a 170-basis …

We must look beyond India’s exciting headline GDP numbers
1 year, 1 month ago

We must look beyond India’s exciting headline GDP numbers

Live Mint  

The Indian economy’s stellar performance in the second quarter of fiscal 2023-24 put all previous GDP estimates, including the Reserve Bank of India’s own estimate of 6.5%, in the shade. Geopolitical factors, the strength of the US economy and hence the US Federal Reserve’s continued fight against inflation, and the ongoing global slowdown are sure to lower growth in the …

Indian economy is resilient amid global slowdown: Sitharaman
1 year, 1 month ago

Indian economy is resilient amid global slowdown: Sitharaman

Hindustan Times  

The Indian economy is “remarkably resilient” amid a global slowdown because of “solid” domestic demand, moderate inflation, sustained capital expenditure and continued buoyancy in revenue collections, the finance ministry said in its monthly review on Tuesday. “Despite rising input costs, overall sentiment in the services sector remains upbeat, driven, among others, by an upswing in the tourism cum hotel industry …

Average household spending rose 3.5% from August 2023 to July 2024, shows govt. survey
1 year, 5 months ago

Average household spending rose 3.5% from August 2023 to July 2024, shows govt. survey

The Hindu  

India’s average household consumption spending on a per capita basis rose about 3.5% in real terms through August 2023 to July 2024 from a year ago, as per the Household Consumption Expenditure Survey, and the Centre asserted this signals a decline in consumption inequality as well as a narrowing gap between urban and rural spends. In real terms, the average …

Rural demand recovery may drive next bout of inflation in India, say economists
1 year, 10 months ago

Rural demand recovery may drive next bout of inflation in India, say economists

India Today  

The Indian economy could see another bout of inflation as the rural demand revives and the informal sector recovers from the pandemic-lows, economists at HSBC Securities and Capital Markets said. While rural demand was weak in the early part of last year, wage growth, adjusted for inflation, has now surpassed pre-pandemic levels, HSBC's research showed. "Even if the winter crop …

Consumer goods makers bet on rural recovery to lift profits
1 year, 10 months ago

Consumer goods makers bet on rural recovery to lift profits

Live Mint  

A nascent revival in rural demand is likely to prop profits at Indian consumer goods companies in the March quarter, as improving income and credit disbursal allow buyers to spend more on branded oils, tea, snacks and soaps. Rural consumers - hit especially hard in the aftermath of the pandemic - typically make up about two-thirds of consumer goods companies' …

Budget 2023: ’Rural income growth, women empowerment should be priority’
1 year, 11 months ago

Budget 2023: ’Rural income growth, women empowerment should be priority’

Live Mint  

With global geopolitical uncertainties and the slowing growth of the world economy, it is crucial to address job creation challenges and boost consumer demand in the country. The upcoming budget should be focused on rural income growth and our target should be at least 100% growth in every household income in near future. Through women's self-help groups, millions of jobs …

Private consumption expenditure and demand: Please ma’am, we need some more
2 years, 11 months ago

Private consumption expenditure and demand: Please ma’am, we need some more

Live Mint  

Slowdown in personal consumption is the single biggest problem facing our economy. The double whammy of lower employment and Covid-19 has meant a significant reduction in consumption for low and lower-middle income households. This has meant a delayed recovery on many key sources of consumption – automotive, high value durables, OOH and discretionary spends like retail, restaurants and personal care. …

Budget 2022: Bharat needs revival of animal spirits to boost consumption
2 years, 11 months ago

Budget 2022: Bharat needs revival of animal spirits to boost consumption

Firstpost  

Budget 2022: Rural demand turned sluggish after the second wave of the pandemic even as other parts of the economy recovered robustly The first advance estimate of India’s GDP growth for 2021-22 indicated a steadfast recovery in the economy after the blow from COVID-19 in 2020-21. “There is a structural losing of consumption momentum in the rural areas since 2018.” …

A path for the Indian economy to find its way out of the woods
4 years ago

A path for the Indian economy to find its way out of the woods

Live Mint  

As much we would like to forget 2020, it is unlikely we will anytime soon. The rural economy accounts for almost half of India’s GDP and has done better than its urban counterpart, as reflected in the better performance of sectors with a rural footprint, such as tractors, two-wheelers, fertilizers and agrochemicals. Second, government support is tilted towards the rural …

Don’t take rural demand for granted as a growth driver
4 years, 3 months ago

Don’t take rural demand for granted as a growth driver

Live Mint  

Rising covid afflictions in the hinterland are indeed worrying—not just because of the relatively poor health infrastructure there, but also the wider disruption to economic activity it portends. Two, India’s rural-focused measures such as higher spending under the Mahatma Gandhi National Rural Employment Guarantee Scheme, extension of concessional credit to farmers, and front-loading of payments to farmers under the Pradhan …

Rural Demand Can Aid, but Not Replace Urban Demand; Agri Sector Could Drive Economic Revival: Report
4 years, 4 months ago

Rural Demand Can Aid, but Not Replace Urban Demand; Agri Sector Could Drive Economic Revival: Report

News 18  

Rural demand can contribute towards recovery in the economy but cannot be a substitute for urban demand, according to a report. While the industrial and services sectors are still struggling to recover from the adverse impact of COVID-19, the agriculture sector could become an engine for economic recovery, India Ratings and Research said in a report. "Since the share of …

Measures taken by Indian govt. will boost economic growth: SBI MD Dinesh Khara
4 years, 10 months ago

Measures taken by Indian govt. will boost economic growth: SBI MD Dinesh Khara

The Hindu  

Slowdown in the Indian economy has bottomed out and measures taken by the government in the recent budget to improve capacity to spend in rural sector, infrastructure creation and inviting foreign investments will boost growth, State Bank of India Managing Director Dinesh Khara has said. “These kinds of measures which have been taken will go a long way in terms …

India's weak household consumption to curb economic growth: Moody's
5 years ago

India's weak household consumption to curb economic growth: Moody's

India TV News  

Moody's Investors Service on Monday said that India's weak household consumption will curb economic growth and weigh on the credit quality of Indian issuers in a range of sectors. Moody's has lowered its GDP growth projection for India for the fiscal year ending March 2020 to 4.9 per cent from 5.8 per cent. The major factors responsible for weakening economic …

Missing demand: on economic slowdown
5 years, 8 months ago

Missing demand: on economic slowdown

The Hindu  

A welter of data collectively and individually point to one worrying conclusion: economic momentum across sectors is slowing in the widening absence of that key ingredient, demand. While sales of commercial vehicles, a fair proxy for overall economic activity, slid 6% last month, a 16.4% drop in demand for two-wheelers extended the segment’s slump into the new financial year, mirroring …

Core inflation flourishes in Rural India amid growing agrarian crisis
6 years ago

Core inflation flourishes in Rural India amid growing agrarian crisis

Live Mint  

When income is stagnant, a logical outcome could be curtailing expenditure. But rural India seems to be fine with paying higher prices for services that range from education to matinee shows. The chart above shows inflation for services and a few discretionary items has been higher in rural areas compared to urban centres. It is also clear that farm income …

Agrarian, liquidity crisis weigh on India consumption story
6 years ago

Agrarian, liquidity crisis weigh on India consumption story

Live Mint  

Analysts are getting increasingly wary about the outlook for consumption demand, even though investors are brushing aside these risks for now. In fact, the 2019 outlook reports of other brokers are also taking into account the impending slowdown in India’s consumption story. For instance, JM Financial Institutional Securities Ltd said in a 7 December note that “the consumption outlook is …

Discover Related