A healthy harvest season, better MSPs for crops and expected spending by the government in upcoming Budget are a few factors that may lead growth in the rural consumer segment
The slowdown in rural demand is expected to gradually recover but the pain is likely to persist somewhat, with consumers still cautious before buying a staple or a discretionary item. As consumer demand in the urban sector continued to grow despite inflationary pressures and price rise of products, while rural took a drastic hit, analysts expect the growth divergence to start narrowing. A full recovery in rural demand may still be a far cry, but there are visible green shoots. A healthy harvest season, better minimum support prices (MSPs) for crops and expected spending by the government in Union Budget ahead of general elections next year are a few factors that may lead growth in the rural consumer segment.