India Inc already seeing signs of consumption recovery, says FM Sitharaman

Finance Minister Nirmala Sitharaman on February 8 said that the central bank's decision to cut the repo rate as well as the income tax rebate provided in the Budget for FY26 would together give a further push to consumption, which is already showing signs of a possible recovery.

This should then trigger private investment, Sitharaman said during a briefing after addresses the Central Board of Directors of the RBI in New Delhi.

"I would expect that (private investment) because the feedback I have got...these are anecdotes, I am not relying on them, but orders for FMCG for the period April to June are already getting booked and industry is clearly seeing signs of a possible recovery in consumption and as a result many of them are looking at reviewing their capacity utilisation itself," she said.

The Reserve Bank of India's interest rate cut of 25 basis points after almost five years comes close on the heels of the Centre's decision to lower the income tax burden on India's salaried class in the Union Budget presented on February 1.