Green Shoots: India's Path to Reviving Consumption

FICCI President Harsha V Agarwal highlights a positive outlook for India's consumption growth as food inflation begins to recede. With government spending on infrastructure projects and rural schemes increasing, optimism is high for improved consumer demand, particularly aided by agricultural success and ongoing tax reforms.

India's economy shows signs of recovering from high food inflation, according to FICCI President Harsha V Agarwal. With inflation beginning to subside, there's hope for revived consumption growth, supported by government infrastructure investments and robust agricultural output.

Agarwal emphasized that the government's strategic spending has been key, directing resources towards infrastructure development rather than revenue expenditure. Increased government spending, particularly in the third and fourth quarters, is expected to continually uplift the economy.

While challenges persist for middle-class consumers due to inflation impacts, optimism remains strong. Cooling prices and rising private investments suggest a shift towards higher demand for skilled jobs, potentially setting the stage for economic improvement in the months ahead.

(With inputs from agencies.)