Rural Consumption

According to a RBI report, households in rural and semi-urban areas reported a slight uptick in their current perception of inflation, which rose by 10 bps to 5.9 percent compared with the previous round of surveys.

Chart of the Day | Changing contours of domestic consumption story

Data shows that unbranded players are leading consumption in urban markets

Urban India spending nearly 50 percent of food budget on dining out and deliveries: Deloitte-FICCI report

Among the factors driving this trend is the shifting consumer preference towards snacking, demand for on-the-go formats due to faster urbanization and more women joining workforce, along with easier access to e-commerce options.

Urban India's economic drive powers rural consumption growth

Rural-urban consumption gap has been narrowing over time, which is a good development. With at least two of three agricultural households working marginal land holdings, there are limited economic prospects for them in the rural economy. It’s the income, over 50 percent, sourced from areas beyond their farm which is holding up consumption

In FY25, we will need FII flows to support the market: Saurabh Mukherjea

The founder of the portfolio management service weighs in on the good and the ugly that the Indian market has seen and has emerged stronger from. He also has a word of caution about the bad that could be around the corner later this year.

Is the improvement in rural consumption on the back of increased borrowing?

A NABARD survey finds that the increase in consumption expenditure by rural households has been funded by drawing down their financial savings, on the one hand, and increasing their borrowings on the other

Jobs’ policy pivot can cure ailing consumption engine, but implementation is key

Higher rural demand should reignite India’s domestic consumption cycle, which should in turn aid India’s GDP growth and boost corporate earnings of related sectors

Budget 2024: Can Increased Allocation for Social Spending Boost Rural Consumption & Aid FMCG Cos?

Will the upcoming budget have a greater focus on the rural sector which in turn could boost rural incomes and thus have a ripple effect that can trickle down to the FMCG sector, industry and analysts tracking the sector are hopeful. The key beneficiaries of increased rural demand are expected to be blue-chip large-cap consumer staples players such as Dabur India, Hindustan Unilever, Nestle India or Godrej Consumer. Here’s a list of expectations that the FMCG would want to hear from FM Nirmala Sitharaman

Signals from MSP hikes for the FY25 Kharif season

It comes in the backdrop of a slow start to the monsoon, with all eyes on whether farm output will give a boost to rural income in the current fiscal

Rural India spent maximum of food expenditure on processed food, beverages in 2022-23: Survey

The share of food in total consumption expenditure of rural households varies from 39 percent in Kerala to 54 percent in Bihar and Assam.

Urban-rural consumption expenditure differential falls to 75% in 2022-23: Survey

The average MPCE at Rs 10,501 of the top 5 percent of the rural population is about 7.6 times of the average MPCE at Rs 1,373 of bottom 5 percent of India’s rural population.

Rural demand lag hits FMCG firms in Q3; benign inflation, MSP hike, Budget augur well for recovery

The FMCG sector had been hit by inflation, uneven rains during the kharif season and the resultant weak sentiment of the rural sector. However, sentiment is positive for the sector in coming months over expectations that the government will initiate measures to boost rural incomes and demand.

Urban consumption ended FY23 at over-three-year high but may fall in FY24: QuantEco Research

According to QuantEco Research's economists, air passenger traffic and demand for petrol have fueled urban consumption. However, the sharp increase in interest rates over the past year is expected to weaken consumption this year

Budget 2023: Tepid rural allocations unlikely to derail farm inputs demand

Rural spending as a percentage of GDP is projected to come down from 1.4 percent in FY23 to 1.3 percent in FY24

Budget 2023 gives a boost to consumption, rural economy

Higher capital expenditure and an increase in disposable income augur well for FMCG and retail stocks as well as companies related to tourism

Budget Snapshots: Rural sentiment perks up, but consumption yet to recover

FMCG data show rural demand continues to underperform urban demand

Rural theme: Agro-chemical space is passe, experts now bet on tractors, auto & rural consumption

Out of 23 stocks from agri and fertiliser space, 11 have rallied 10-100% in 2020 so far. Agriculture remains a strong play, but experts feel agro-chemical stocks may be running out of steam.

Could inequality provide an unexpected support for consumption?

The relatively well-off have a disproportionately high share of consumption

Budget 2019: Status quo for consumption stocks; Pick-up in monsoon & cheaper inputs key triggers

Companies which are deploying internal accruals such as cost savings or utilising super normal profit from other product groups are clear favourites

Modi 2.0: India Inc says need of the hour to step up rural consumption

Investors are concerned with the weak commentary given by the management of consumption driven sectors like auto, paints and FMCG. Management indicated a rural slowdown is underway.

Digital theme key; build portfolio in next 3 months: Max Life

Speaking to CNBC-TV18 Mihir Vora, Director and Chief Investment Officer of Max Life Insurance said that the next three months would be a good time to start building a portfolio.

Nomura growth indices lowest since 1996, in line with sub-6% GDP

Confirming fears of demonetisation move hitting growth, Japanese brokerage Nomura today said its proprietary indices have dipped to the lowest levels since 1996, with rural consumption showing the maximum impact.

These are themes the Midcap Mogul has now set his sights on

Andrade says there are more people graduating into the earning cycle and trading up as consumers, than corporates expanding balance sheets. So individual balance sheet will now expand, like the corporates did so in the last decade, he says

'Cement cos Q3 earnings may dip on dismal pricing environment'

"Cement companies are likely to witness a muted growth in y-o-y earnings. The performance of cement companies is likely to be affected in December 2015 quarter due to delay in capex revival along with dismal pricing environment," a Reliance Securities report said.