Apart from the growing middle class which is the major chunk of the indian consumption sector i seem to understand that in the future the government would also play a major role.
Short Term:
With more than 8 election scheduled in a year or so, there would be a rise in government spending. as empirically stated there is an average increase of 17-18% in the government spending. Therefore, more money in the hands of consumers. With PI and PDI increasing this could drive the consumption cycle.
Long term:
Government has taken many initiatives of removing the barriers for subsidies and other incentives provided by them (Aadhar Card). With such incentives i would understand it as discretionary spending can increase. Companies like HUL, ITC, Pidlite have good earning projections.
As we are also in a declining interest rate scenario, more loans will be taken again a movement of money from banks, institutions to consumers. Therefore, the consumption cycle is at its prime stage and theres money to be made.
Research on the below companies are going on:
Pidlite, HUL, ITC, Tata Global Beverages, Jubliant, Godrej, Havells, Britannia, Pantaloon, UB group.
If anyone seems to have a contrary view please comment.
Short Term:
With more than 8 election scheduled in a year or so, there would be a rise in government spending. as empirically stated there is an average increase of 17-18% in the government spending. Therefore, more money in the hands of consumers. With PI and PDI increasing this could drive the consumption cycle.
Long term:
Government has taken many initiatives of removing the barriers for subsidies and other incentives provided by them (Aadhar Card). With such incentives i would understand it as discretionary spending can increase. Companies like HUL, ITC, Pidlite have good earning projections.
As we are also in a declining interest rate scenario, more loans will be taken again a movement of money from banks, institutions to consumers. Therefore, the consumption cycle is at its prime stage and theres money to be made.
Research on the below companies are going on:
Pidlite, HUL, ITC, Tata Global Beverages, Jubliant, Godrej, Havells, Britannia, Pantaloon, UB group.
If anyone seems to have a contrary view please comment.
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