Beautifully pendown, but the recent interview of Jayen Mehta ( MD of Amul ) in which he said that Amul is seeing good festive demand and has recorded double digit volume growth. Considering the fact that Amul mainly deals in basic necessities which caters to both rural and urban area so why does these companies like HUL, Tata Cons, Nestle is hinting for consumer slowdown? Are they facing competition from D2C brands or anything else?
Thank you for sharing your insights on the current expenditure situation in India. While the three topics discussed today were all compelling, they appear somewhat contradictory when considered together. There is a clear decline in consumer expenditure in urban India, which seems to be offset by an increase in rural expenditure—likely a seasonal shift. Along with a 25% rise in credit card usage, it raises questions that basis on which the RBI expects consumer spending to drive economic growth.
Interesting observation. I do think the credit card debt is somewhat exclusive to the sectors which are being used to highlight drop in urban demand, namely FMCG and Automobile. Usually people don’t take CC EMIs for FMCG consumptions and automobile loans are secured by nature and not funded via CC IMO. CC EMIs usually are done via E-commerce platforms mostly for electronics, mobiles etc. However, data is needed to further understand where the debt money is being spent.
To me, the CC loans being unsecured, correlates with Dr Das’s point on new DeFi point, providing easy access to debt.
Beautifully pendown, but the recent interview of Jayen Mehta ( MD of Amul ) in which he said that Amul is seeing good festive demand and has recorded double digit volume growth. Considering the fact that Amul mainly deals in basic necessities which caters to both rural and urban area so why does these companies like HUL, Tata Cons, Nestle is hinting for consumer slowdown? Are they facing competition from D2C brands or anything else?
Thank you for sharing your insights on the current expenditure situation in India. While the three topics discussed today were all compelling, they appear somewhat contradictory when considered together. There is a clear decline in consumer expenditure in urban India, which seems to be offset by an increase in rural expenditure—likely a seasonal shift. Along with a 25% rise in credit card usage, it raises questions that basis on which the RBI expects consumer spending to drive economic growth.
Interesting observation. I do think the credit card debt is somewhat exclusive to the sectors which are being used to highlight drop in urban demand, namely FMCG and Automobile. Usually people don’t take CC EMIs for FMCG consumptions and automobile loans are secured by nature and not funded via CC IMO. CC EMIs usually are done via E-commerce platforms mostly for electronics, mobiles etc. However, data is needed to further understand where the debt money is being spent.
To me, the CC loans being unsecured, correlates with Dr Das’s point on new DeFi point, providing easy access to debt.