Recent FMCG leaders' remarks suggest India's economy may be diverging, with shifting demand patterns hinting at two distinct economic paths
Earnings calls show declining demand but steady growth in premium sales, hinting at a deepening economic divide and a “K-shaped” recovery for India
The divergence lies not between urban and rural, but between high-income consumers buying premium goods and lower-income groups facing stagnant demand
Rural demand is recovering with a stable monsoon, while urban demand, especially in metros, lags, challenging assumptions that urban growth is self-sustaining
An FMCG leader warns of a shrinking middle class in India; as the elite buy premium goods, middle-income stagnation threatens sustainable, balanced growth
Experts suggest urban demand may have relied on fading government stimulus; deeper data on urban poverty is needed to gauge real prosperity and hardship levels