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According to Worldpanel India, rural households now contribute more than 40 percent of premium FMCG volumes, up from 30 percent five years ago.
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Out-of-home biscuit consumption dropped 8 per cent YOY in May 2025, even as chocolates jumped 32 per cent and salty snacks rose 6 per cent.
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High-frequency indicators of aggregate demand for May suggested a pick-up in rural demand, especially given the strong performance of the agricultural sector, RBI bulletin says
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The government has also enhanced the short-term loan limit under the Kisan Credit Card (KCC) scheme from Rs 3 lakh to Rs 5 lakh for 7.7 crore farmers, fishermen, and dairy farmers.
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The rural demand slowdown has handed over the baton to urban demand. While rural has picked up, the hole left by missing middle class demand, unless it revives soon, is too big to ignore
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Shaktikanta Das said there is 'some narrative' that the festive season sales this year may have slowed down or that there was some unseasonal rain, however, these negatives are outweighed by positives.
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While the feminine care sector has expanded 100 times over the past 30 years, reaching Rs 3,400 crores, rural India continues to lag in terms of product usage.
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After a difficult few years, FMCG companies are poised to deliver better sales and earnings growth, but first a crucial piece of the growth puzzle has to fall in place
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Private final consumption expenditure or PFCE, accelerated to a seven-quarter high of 7.4 percent in Q1 FY25 from 4.0 percent in Q4 FY24.
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Puri says that India's GDP will grow by 8 percent in FY24-25 because of a better performance by the agriculture sector.
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While volumes did not see meaningful pickup in the fourth quarter of FY24, commentary from managements particularly of companies such as Marico, Dabur, Colgate and Emami "improved materially", wrote the brokerage
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HUL’s business strategy involves three key priorities: first, driving volume growth; second, enhancing gross margins to fuel further investment; and third, ensuring competitiveness in the market by expanding market share, said Ritesh Tiwari.
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Taken together, recent news reports, higher rural wages, lower inflation and the fall in demand for work under MGNREGA could indicate the green shoots of a turnaround in rural consumption
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A total of 405 items in the consumption basket were covered in the survey, which was divided into three categories: food items, consumables and service items, and durable goods.
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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.
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Analysts point to the high probability of populist measures closer to polling election dates that could also lead to increased spending in rural markets.
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The outlook is bullish for overall festive demand and a significant recovery in rural consumption, encouraged by easing inflation and hopes of doles ahead of the elections
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India has managed to find a consensus to move the agenda forward on debt issues, crypto regulation and taxation, infrastructure in G20 deliberations, says India’s chief economic advisor, V Anantha Nageswaran
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India recently banned non-basmati white rice exports to contain domestic inflation and increase availability locally. However, the decision is expected to have a big impact on the global market as Indian exports meet 40 percent of world rice demand.
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This will be driven by higher volumes and recovery in rural demand, according to the analysts.
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Net profit went up 37 percent YoY and Ebitda/vehicle has touched a new high
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The two are used to gauge rural demand but the contrast in volume growth points to change in consumer behavior. Better crop output, improving rural incomes behind tractor sales growth.
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The tapering of inflation gives hope that lower-income consumers may return to the consumption fold in 2023, putting life back into demand growth
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Almost 40 percent of the Rs 4.7-lakh-crore sector comes from the hinterland markets, which have been hit by high inflation, low wages and high job losses since the COVID-19 pandemic.
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“The private sector has been holding up. Rural demand is also gaining gradually, investment demand is picking up...the agricultural sector remains resilient,” Shaktikanta Das said.
