The Indian consumption story is getting a facelift as rural demand shows promise

Consumer goods and automotive companies are witnessing a revival in rural demand, which was subdued for most of FY24. Expectations of a bumper rabi crop have helped turn the tide.

The Reserve Bank of India’s (RBI) Monetary Policy Committee kept the repo rate unchanged last week, noting that as rural demand picks up, consumption is expected to support economic growth in 2024-25. “Rural demand, which previously lagged behind urban demand, has picked up again since the second quarter of 2023-2024. This is also reflected in the performance of indicators such as two-wheeler sales (30.3 percent YoY growth in January-February), demand for MGNREGA (9.8 percent)

First print: April 8, 2024 | 11:53 PM IST