Headline rural wage growth in India is misleading, with underlying increases significantly lower than reported. Rising inflation, reverse migration from cities, and an uncertain monsoon threaten to dampen rural demand. Consumer companies may face squeezed purchasing power as prices climb and real wages stagnate, potentially impacting their profitability and volume growth in upcoming quarters.
Bond supply may outweigh demand, push yields higher
Bond yields in India are anticipated to increase in the latter half of this fiscal year. This rise is primarily due to higher government borrowing
September 30, 2026