India's consumer market to become world's third largest by 2027: RBI report

India's consumer market is expected to become the world's third largest by 2027, with household per capita spending outpacing all other developing economies in Asia, RBI said in its report.

Clothing and lifestyle retailers and shopping malls are experiencing a sharp recovery in sales across price points in the past few weeks.

This has raised hopes of a pickup in demand through the rest of the festival season that began with Raksha Bandhan and Onam, and cheers for discretionary retail spending. RBI report said electronics and autos are on watch, which may be the next segments to attract festival spend.

There are also indications that rural demand for fast moving consumer goods has swung back into positive territory after being under pressure for over a year.