Diwali Ends as Disaster - Taxed Middle Class Has No Cash
In India, diwali is a vibrant celebration when consumer spending soars. However, the middle class appears to be become more frugal this time, so the situation feels different. The poor quarterly results of businesses like Hindustan Unilever, Nestlé India, and Bajaj auto are a result of the urban middle class's slow spending.
According to Nestlé's CEO, it's a result of a combination of stagnating salaries, increasing food inflation, and a shortage of employment in the market. people have reduced their expenditure on necessities as a result of these. The budgetary policies of the Modi administration also play a significant part. Lower disposable earnings are a result of the higher tax burden on the middle class and the strong focus on social assistance programs.
According to Nestlé's CEO, it's a result of a combination of stagnating salaries, increasing food inflation, and a shortage of employment in the market. people have reduced their expenditure on necessities as a result of these. The budgetary policies of the Modi administration also play a significant part. Lower disposable earnings are a result of the higher tax burden on the middle class and the strong focus on social assistance programs.
The repercussions are most noticeable in the middle class, where people prefer to save rather than spend, even if some affluent households and rural areas are demonstrating resilience. Some industries are directly impacted, while others are impacted indirectly. september witnessed a sharp decline in sales of cars and two-wheelers, while the FMCG industry reported that consumption of staples had plateaued over the previous several years.
This season has also seen a decline in demand for consumer devices. Together, these elements have created a somber atmosphere this diwali, with households putting money ahead of seasonal enjoyment.
This season has also seen a decline in demand for consumer devices. Together, these elements have created a somber atmosphere this diwali, with households putting money ahead of seasonal enjoyment.