Page 5 - Consumption

Govt to conduct another household survey before changing CPI: Report

The findings could lead to a decrease in the weighting of food in the CPI, which is used by the central bank to frame monetary policy

Rural Indians are now spending more on processed food, drinks than cereals

For urban India, the spending on processed food has been more than that on cereals since 2011-12 but the gap has widened in the last 10 years

Indians spending less on food, more on discretionary items, shows survey

The Household Consumption Expenditure Survey, released late on Saturday, estimates average rural consumer spending rose to Rs 3,773 a month per person

No longer the idiot box: How smart TV is changing consumption habits

Smart TV is changing the way programming is consumed and monetised, while making streaming more like regular broadcast television

Growth adjustments

Weak consumption demand is a risk

CMS Info Systems reports 9.3% growth in retail consumption trends

In data shared with Business Standard, the company said the Y-o-Y growth in the October and November period has been at 12.5 per cent, pointing at robust growth in the third quarter as well

Weak consumption demand key vulnerability for growth: Shashanka Bhide

Shashanka Bhide, one of the three external members of the Monetary Policy Committee (MPC), on Thursday flagged a weak consumption demand as a key vulnerability for growth in the second half of the current fiscal as well as the next financial year. After more-than-expected Q2 growth which printed at 7.6 per cent on the back of a 7.8 per cent clip in Q2, the Reserve Bank in the December policy review revised upwards the FY24 growth projection by 50 bps to 7 per cent. While the government does not have an official GDP forecast number, it expects the economy to grow at 6.5-7 per cent this fiscal. "The September quarter growth at 7.6 per cent was significantly more than what we were expecting. But these numbers, even when they are more positive or favourable, require far more concern. "I believe there are vulnerabilities to this 7 per cent growth assessment. The few major growth drivers include investments that are driving growth, but we see weaker growth in consumption demand," Bhide s

Best of BS Opinion: An update on global capital, supply-side dilemma & more

Here is the best of Business Standard's opinion pieces for today

A supply-side dilemma

We need to stop obsessing over consumption, the real problem is supply

Be selective in consumption stocks ahead of ICC World Cup, say analysts

Headwinds for the airlines and QSR sectors, analysts believe, could outweigh the positives in the form of a demand uptick

Need for real-time data on production, prices of tea: IIPM Director

The government should set up an institutional mechanism to bring out real-time data on production, consumption, trade, and prices for the tea sector, Indian Institute of Plantation Management (IIPM) Director Rakesh Mohan Joshi said on Friday. He also said there is an urgent need to bring out enabling policies with targeted interventions to address the rapidly emerging novel issues such as climate change, curtailing production costs and achieving efficiency across the value chain in the sector. To cope with emerging challenges in the tea industry, the government should focus upon adopting an integrated approach to evolve an institutional mechanism with active participation of producing states along with other stakeholders in tea production. "The tea industry, once a gold mine for the British planters and a major source of foreign exchange earnings that played a critical role in India's trade and economy in the last century, struggles today even for survival," Joshi said. India's sha

Inflation is slowing down personal consumption expenditure: RBI report

Even if the central bank has not ruled out further interest rate hikes, bank lending and deposit rates have started to soften

Inflation is slowing down personal consumption expenditure: RBI paper

Inflation is slowing down personal consumption expenditure, which in turn is moderating corporate sales and holding back private investment in capacity creation, said a Reserve Bank paper on Friday. The paper, authored by a team led by RBI Deputy Governor Michael Debabrata Patra, underlined the need for lowering inflation to revive consumer spending and boost corporate revenues and profitability. The retail inflation based on the consumer price index (CPI), which remained above 5 per cent during 2022-23, is now on the decline and fell to a two-year low of 4.25 per cent in May, following RBI's monetary policy actions and government measures. "Recent national accounts data and corporate results when read in conjunction clearly show that inflation is slowing down personal consumption expenditure. This, in turn, is moderating corporate sales and holding back private investment in capacity creation," said the article published in the RBI's latest bulletin. The Reserve Bank, however, sai

Consumption of consumer goods in rural India back on growth track in Q1

The consumption of consumer goods in rural India returned to growth after more than a year in the March quarter and is expected to grow for the rest of the year

India's consumption is expected to become 50% cashless by FY26: Report

There will be some 350 mn digital consumers in 'cash displacement market' in three years

India to become 50% non-cash economy in consumption in 3 years: Report

India is expected to become a 50 per cent non-cash economy in consumption in the next three years, with person-to-merchant digital transactions reaching over $1.5 trillion by FY26

Modest downgrade of India's growth due to slow domestic consumption: IMF

India's growth rate has been modestly downgraded from 6.1 per cent to 5.9 per cent for the current fiscal mainly because of the slowness of domestic consumption and data revision, according to a top IMF official. The International Monetary Fund (IMF) on Tuesday lowered India's economic growth projection for the current fiscal to 5.9 per cent from 6.1 per cent earlier. Yet India will continue to be the fastest-growing economy in the world. In its annual World Economic Outlook, IMF also lowered the forecast for 2024-25 fiscal (April 2024 to March 2025) to 6.3 per cent from the 6.8 per cent it had predicted in January this year. Krishna Srinivasan, Director of the Asia and Pacific Department, IMF, said the revisions to India's growth have been very modest from 6.1 per cent to 5.9 per cent and probably reflects two factors. "One is that domestic consumption growth is starting to slow, albeit modestly. The other factor is data revisions in 2019 to 2020, which suggests the economic ...

India's steadying economy shows early signs of weakening consumption

Economic expansion may be under pressure as the "full-blown impact" of the Reserve Bank of India's 250 basis point hike in borrowing cost since May gets transmitted to end-consumers, Crisil Ltd., the

Inflation slows down packaged tea consumption growth, rural impact bigger

Tea drinkers forced to downgrade to lower qualities of beverage; consumption also impacted by rising milk prices

Q3 GDP numbers: Pent-up household demand fizzles out, shows data

Govt capex carries capital formation