Consumption prospects of different classes likely to be diverging

Urban prosperity should hardly be dependent upon government support, which is after all unsustainable over a long period

Recent remarks by senior management in various fast-moving consumer goods (FMCG) companies have brought to the fore a knotty problem: Is the Indian economy diverging? In other words, are two different Indias experiencing two very different economic paths? FMCG companies have emerged from the earnings-call season with two major shared narrative points: That demand is no longer as dynamic as it was, but that premium products may continue to do well. These companies, given their strong distribution and marketing reach, are often watched closely for the inferences they make about broader consumer demand. Talk of a “K-shaped recovery” from the