Consumption inertia has weighed heavily on consumer-facing companies for nearly two years, as the “revenge spending” euphoria that followed the pandemic fizzled out after the 2023 festive season. For years, govt undertook aggressive capex, but while infra spending built the rails for the future, it required resources – partially raised through taxes. This, combined with a tepid 3% wage increase across the top 50 companies, and sticky 6% inflation, constrained the consumption engine.
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Views expressed above are the author’s own.
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