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    you are here: HomeNewsOpinion

    Budget Snapshots: Rural sentiment perks up, but consumption yet to recover

    FMCG data show rural demand continues to underperform urban demand

    Moneycontrol Opinion
    January 30, 2023 / 12:06 PM IST
    Budget Snapshots: Rural sentiment perks up, but consumption yet to recover

    All eyes will be on the budget to see if it retains its focus on capital investments or the government decides to give a bigger boost to consumption to drive growth (Representative image)

    Rural FMCG demand has lost the edge it had over urban demand some years ago. Blame it on the pandemic, inflation and a general slowdown in the rural economy. Companies have been consistently reporting this and the most recent quarter was no different. See chart 'Rural demand declined'. (image) Although data for the December quarter is not available, charts from Hindustan Unilever’s presentation shows that the fall in rural FMCG volumes was much higher than that in the urban markets. And...

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