Union Budget 2026-27: Consumers cautiously expect a brighter future

Private consumption grows 7% in FY26, but its GDP share stays flat as household finances remain strained despite rising consumer confidence

Challenges 

• Private consumption is growing, but its share of GDP remains stuck at around 60-61 per cent
• Current financial strain persists despite optimism for future stabilisation and better days ahead

 

Takeaways

• Consumption growth at 7 per cent in FY26 reinforces emphasis on demand-side measures
• Consumer confidence levels are approaching 100, suggesting households are ready to increase spending despite current economic uncertainties