Unlocking India's mass market potential needs creative policy push

Strengthening domestic consumption needs creative policies encouraging new economy business models that can develop and deepen India's mass markets comprising small consumers and small suppliers

External headwinds inevitably turn our gaze to domestic consumption to see if it can come to the rescue of gross domestic product or GDP growth.  All eyes and hopes rest on traditional policy levers of demand stimulation. The earlier cut in income-tax rates that helped a small but relatively high-spending segment of Consumer India and the forthcoming cut in goods and services tax rates, slated to reduce prices of a range of consumption items, will give a much-needed one-time step-up in consumer spending.

 

However, more can and must be done by way of creative and strategic policy measures to develop