India is poised for a long-awaited economic take-off, driven by rising aggregate demand and increased non-food spending in the rural economy, according to the Reserve Bank of India's May Bulletin released on Tuesday.
Rising aggregate demandThe RBI's article on the 'State of the Economy' highlighted a quickening momentum in aggregate demand. Recent indicators show that rural demand for fast-moving consumer goods (FMCG) has outpaced urban markets for the first time in at least two years. This surge was driven by robust demand for home and personal care products, resulting in an FMCG volume growth of 6.5%, propelled by rural growth of 7.6% compared to urban growth of 5.7%.
