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Indian Consumer Sector to See Recovery From Q1 FY26
The Business Guardian
|April 13, 2025
The Indian consumer sector will see a gradual recovery starting from the first quarter of financial year 2026 (Q1FY26), driven by encouraging signs of rural revival, even as urban demand remains tepid in the near term, according to a report by HDFC Securities.
The report adds that the key indicators, such as healthy reservoir levels, increased state welfare initiatives targeting women, and a strong budgetary push towards rural development are expected to support rural consumption.
"Green shoots have been observed regarding rural recovery, which will support companies moving forward from next quarter onwards," the report added.
Meanwhile, the report highlights that the urban recovery is likely to take shape over the medium term as inflation across essential categories like food, rent, and healthcare begins to ease, complemented by income tax relief announced in the February 2025 Union Budget.
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