Key View: We hold a positive outlook for consumer spending in India over 2024, as the wider Indian economy recovers and growth figures return to a more stable medium-term trajectory. High-frequency data indicate that consumer confidence is at the highest since 2019 and have returned to pre-Covid levels, suggesting that consumer spending on big-ticket items will be more likely, as the economic and health situation in the market continue to stabilise. Employment is also at its lowest in two years, further supporting household spending. We highlight more sticky inflation as the key downside risk to the outlook over 2024.
