A sustained consumption boom is far from assured yet
- India has seen a recovery led by profits rather than wages even as private investment remains weak
The festive season has begun with an undercurrent of optimism. Indian newspapers have reported that consumer goods companies, online retailers, high-street stores and malls are expecting strong sales this year. Such buying is welcome at a time when consumer spending is driving economic expansion in India, with infrastructure spending by the government lending a helping hand. Neither corporate spending on new capacity nor global demand is strong enough right now. So, much depends on the strength of consumer demand.