Rural demand in India has recently increased due to higher borrowing, as per insights from the latest Moneycontrol Pro Panorama. However, concerns are rising as Maruti Suzuki India Chairman R C Bhargava pointed out a decline in sales in the sub-Rs 10 lakh car segment. This decline is attributed to stagnant income levels, fluctuating fuel prices, and rising costs of entry-level models.
New monetary policy committee member Nagesh Kumar has advocated for a rate cut, citing weakened demand across the economy. The Reserve Bank of India's Enterprise Surveys indicate a moderation in demand conditions in manufacturing and the job market across key sectors.
Additionally, Nestle India Chairman Suresh Narayanan reported sluggish growth in the FMCG sector, with food and beverage growth dropping to 1.5-2 percent, a significant decrease from previous double-digit figures, mainly due to food inflation.