Consumption boom set to boost Indian economy

TIL Desk/Business/Mumbai-Backed by healthy salary hikes, rising aspirations and easy credit, Indian consumers are spending more on new products both online and offline. Consumer-oriented companies across sectors have seen robust sales growth in the past few months, making their chief executives smile again.

Data shows that Indian consumers are driving growth in the automobiles and airline sectors, apart from supporting mobile phones and consumer durables sales. Retail loans, too, are rising, and this boom is likely to support the broader economic growth in the current financial year, CEOs said. The recent festive discount offers by online retailers have also reported robust sales.

Statistics tell the story of a surge in consumption. Passenger vehicle sales grew an impressive 17.8 per cent year-on-year, while two-wheelers posted 20 per cent plus growth in the quarter ended September of financial year 2016-17 (FY17). Airlines have reported a robust 23 per cent growth in passenger traffic between April and August this year on a 20 per cent y-o-y growth in calendar year 2016. Air traffic growth was 10 per cent in 2015.