Key Points
Upcoming general elections and further reduction in inflation will help revive consumer demand across categories from grocery to apparel to electronics from March-April onwards, with rural markets and mass-segment products already showing signs of recovery, chief executives of several leading companies said.. Consumer goods companies were earlier expecting demand to recover in the December quarter..
"While green shoots of recovery are visible in rural India, the demand growth is still trailing urban markets," Dabur India chief executive Mohit Malhotra said..
Neeraj Khatri, chief executive (India business) of Wipro Consumer Care, maker of Santoor soap, said some green shoots are evident in rural demand and consumer confidence is improving every quarter..
While volume growth for the fast-moving consumer goods (FMCG) industry in urban India has been on a positive trajectory since April-June last year, rural markets have grown marginally this calendar year, according to market researcher NielsenIQ...
But full recovery is expected around April-June, led by elections when rural economic activities get a boost, he said.. Earlier this month, the Reserve Bank of India lifted the GDP growth forecast for FY24 to 7% from 6.5% estimated earlier following a better-than-expected July-September quarter...
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