Consumer companies also face stiff regional competition, a rising trend of D2C brands and inventory pressures in trade channels, which has been worsened by a summer season sale that has been largely muted, the note said.
Sluggish growth in GST collections in recent times triggers concern of a delay in the much-expected economic turnaround
Experts suggest that India’s consumption demand hinges on jobs growth accompanies by rate cuts
Diesel, the most widely used fuel in the country, saw consumption drop 13.7 per cent during July 1-15 to 3.16 million tonnes from 3.67 million tonnes demand in the same period of the previous month.
The recent cut in excise duty and value added tax by states will augment purchasing power of people, the Governor said.
The contraction in real rural wages continues
When it comes to residential real estate investment, it pays to remember that speculative investments may have played a role in escalating prices beyond affordability in some areas. It is the time to focus on fundamentals.
The government should double the basic I-T exemption limit to Rs 5 lakh per year and continue with incentives and deductions to corporate houses for stimulating consumption demand and propel private investment post demonetisation, according to an EY survey.
Over a longer timeframe though, higher inflation expectations tend to be supportive of gold which means that gold could eventually benefit in an inflationary environment once the short term jitters are done.
Adi Godrej, chairman of Godrej Group says the group would be equally focused on its local and international businesses, but sees the international business growing faster.
According to economists Siddhartha Sanyal and Rahul Bajoria, weakness in usually resilient segments like consumption and domestic trade suggests continued sluggishness in overall economic activity.
Speaking to CNBC-TV18, chief financial officer of McLeod Russel, Kamal Baheti says that he expects Indian tea production to hit a record high of 990 million kgs this year.
Nitin Raheja of Rada Advisors joins CNBC-TV18 to opine on the factors that are directing growth in India. He says that RBI's push to use monetary tools to control inflation is hitting growth, but more importantly, affecting the capex side of industries. However, consumption demand remains strong.