Delve into the complexities of India’s consumption story with Technopak’s Senior Partner & Head of Consumer, Food & Retail, Ankur Bisen. Ankur’s insights reveal a narrative beyond the numbers, where inequality seems to be casting a long shadow on economic data.
Delve into the complexities of India’s consumption story with Technopak’s Senior Partner & Head of Consumer, Food & Retail, Ankur Bisen. Ankur’s insights reveal a narrative beyond the numbers, where inequality seems to be casting a long shadow on economic data.
“Consumption is a contested play right now because the pie is not growing due to persistent inequalities. If this remains a zero-sum game, then nearly 60% of the GDP is under stress”
“In contrast to the affluent consumption growth theory, we actually see a lot of value-seeking behaviour, especially in rural areas”
“The share of non-food is up in the NSSO survey, but this is not because of growing affluence. Far from it. Non-food consumption is becoming an increasingly crucial part of life, so the MPCE in these categories will go up, Mobile recharges or internet costs are now as important as fuel for a motorcycle. Similarly, rising healthcare spending for lifestyle diseases because of rising life expectancy, climate change, pandemics or pollution cannot be seen as an indicator of affluence. The opposite may be true”
“How is the money for the MPCE arranged? Are people mortgaging or selling land, gold or other assets? 30 to 40% of rural income is generated through remittances. What is the state of remittances and how are they being spent? How stressed is dairy income, the next largest income generator? NSSO does not capture any of this vital information”
