India covid-19 pandemic economy India

Only half of India’s household consumption will come through post covid

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The ongoing discussion on the prognosis for consumer demand is currently based on extrapolations from supply-side data and macro-economic variables.

This column aims to supplement it by providing household-level data on consumption, a “people-view" of those who cause this demand to happen.

India’s household consumer demand, the jewel in its gross domestic product (GDP) crown, is vulnerable and skittish because of dismal occupation demographics, lowly paid and uncertain livelihoods for most; and because most Indian households have very little “surplus income", money remaining after covering their routine expenditure, leave alone their non-routine requirements and emergencies.

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