Agrarian, liquidity crisis weigh on India consumption story2 min read . Updated: 19 Dec 2018, 11:39 AM IST
As we enter the new year, investors will do well to factor in a moderation in consumption demand due to the liquidity crisis and farm distress
Analysts are getting increasingly wary about the outlook for consumption demand, even though investors are brushing aside these risks for now. In its 2019 India outlook, Credit Suisse said it would prefer investment-related stocks over consumption-focused ones in the coming year. The brokerage expects sharp downgrades to GDP growth forecasts for 2019-20. The drag comes from consumption as the impact of the seventh pay commission fades, and aggregate credit availability slows, it says.
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