Home›Global Markets›India›India’s private consumption stays resilient in H1 FY27…

India’s private consumption stays resilient in H1 FY27 despite inflation

Private consumption rose 7.1% year on year in Q1 FY27, helped by easier credit, lower GST burdens and strong rabi harvest demand, Bank of Baroda chief economist Madan Sabnavis said.

Reported · Written up by our desk · India

India’s domestic private consumption remained resilient in the first half of fiscal year 2027 even as inflation pressures build, LiveMint Markets reports. The outlet notes that Q1 FY27 private consumption grew 7.1% year on year.

LiveMint Markets attributes the support to credit growth, a lower goods and services tax burden and strong rural demand tied to a robust rabi harvest. It adds that near term momentum may be supported by festive demand.

The article also flags potential headwinds. Experts cited by LiveMint Markets warn that a weaker than expected kharif harvest and rising commodity prices could limit the pace of consumer spending recovery.

LiveMint Markets further links last year’s GST overhaul to improved demand, saying the indirect tax on passenger vehicles, two wheelers and premium consumer durables was cut to 18% from 28%. It also cites Bank of Baroda’s Madan Sabnavis, who said the lower input cost inflation helped companies.

More like this

Sources