Samvat 2076: Growth revival will be led by consumption sector stress easing

Revival in growth in India will be led by the unwinding of the stress in the consumption sector. Improvement in rural demand from gains in agriculture sector should revive consumption demand

Market sentiment has been moving on a constructive path, even as worries of weak demand conditions and prospect of feeble earing season is underway. The benchmark indices have recovered since mid-September, gaining 9 per cent following several growth-boosting measures announced by the government and the Reserve Bank of India (RBI) in response to decline in real gross domestic product (GDP) growth to 5 per cent in the first quarter of financial year 2019 – 20 (Q1FY20).

The question now is whether the pervasive fear of continued growth slowdown will mar sentiment again?

While it is undeniable that there has been a cyclical