Rural consumption stays sluggish; weather poses risk to recovery
Mint Mumbai|March 03, 2023
Gross domestic product (GDP) estimates show that private final consumption expenditure, the biggest growth driver, rebounded by 11.2% in FY22 on an inflation adjusted basis from an over 5% contraction in the year before and is set to further grow by over 7% this fiscal as per the second advance estimate.
Gireesh Chandra Prasad
Rural consumption stays sluggish; weather poses risk to recovery

New Delhi: While India staged a double-digit rebound in household consumption in FY22 which is set to expand at over 7% this fiscal, experts point out that India’s consumption story has a weakness — rural folk tightening their belt in the face of inflation.

The silver lining is that the worst may be over, unless El Nino conditions disrupt the arrival of the rains and dampen a consumption revival, experts said.

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