Harsha Vardhan Agarwal, the new president of FICCI, shared insights on the current state of consumption in India. As the vice chairman and managing director of Emami, he highlighted the challenges facing the FMCG sector and the broader economic landscape. Agarwal noted that inflation has significantly impacted consumer spending, with many FMCG companies reporting disappointing second-quarter results. The middle and lower-middle classes are feeling the pinch the most, with rural areas experiencing a slight uptick in sales. Agarwal believes that moderating inflation is key to reviving consumer spending. He remains optimistic about the future, citing signs of improvement in the market and the RBI’s efforts to balance inflation control with interest rates. Agarwal suggested that the government focus on reducing inflation and increasing capital expenditure to stimulate economic growth and consumer confidence. He also emphasized the importance of private investment, which he believes is growing, albeit not at the expected pace. Overall, Agarwal believes that the current economic climate is challenging, but there are signs of improvement on the horizon.
