Key Points
Nearly half of Indias consumption will be done by 90% of the population at the lower end by the end of the next decade, State Bank of India researchers said in a new report released Friday, pointing to the country bridging the inequality gap in the coming years and dismissing K-shaped recovery as a flawed narrative...
The researchers stated that an additional Rs 8.2 trillion of consumption had moved to the lower end of the pyramid post-pandemic following the saving of expenditure through free food, shelter and medical being provided by the government...
Using I-T returns data, SBI economists stated that income inequality has decreased over the last few years and that the K-shaped recovery narrative was false...
The research group of the countrys largest public sector bank further noted that the issue of K-shaped recovery was baseless, as people relied on parameters like two-wheeler sales to gauge rural demand...
The oft-repeated conundrum debating a K-shaped recovery post-pandemic seems at best flawed, prejudiced, ill-concocted and fanning interests of select quarters to whom Indias remarkable ascendance, signalling more the renaissance of the new global south, is quite unpalatable, said SBI researchers...
