Current Date 24 May, 2025

Markets potentially underestimating the consumption turnaround in India's economy.

Despite supportive macro factors like tax reliefs, lower interest rates, and falling inflation, consumption remains sluggish. Lower interest rates reduce the incentive to save, potentially freeing up cash for spending. However, uncertainty in the stock market and concerns about wage growth hinder consumer confidence. Experts predict consumption recovery aided by further rate cuts and a healthy monsoon.