India’s consumption recovery appears uneven and fragile, as recent improvements have been driven more by lower inflation, tax relief, and credit expansion than by strong wage growth. Rural demand has benefited from easing price pressures, while urban spending remains constrained by modest income growth and rising living costs. Increasing household debt and cautious consumer sentiment further highlight the structural weakness in demand. Sustainable consumption growth will depend on broad-based increases in real wages, better employment opportunities, and stronger household financial stability rather than temporary policy stimulus.
Click to View MoreIndia’s GDP growth, driven by public capex and services, masks weak private consumption, rising inequality, and agrarian stagnation. Overreliance on state spending is unsustainable. Inclusive growth needs revived household demand, private investment, labor-intensive sectors, and stronger human capital.
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