With retail inflation still over 7%, people in lower-income groups have cut back on essentials while those who are better off are prioritizing expenses.
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Last week, Larsen & Toubro chairman S. N. Subrahmanyan blamed welfare schemes for unavailability of labour. There are other factors in play too.
Consumption took centre stage, while some sectors got more attention than others. But Nirmala Sitharaman’s budget failed to enthuse the markets.
Budget 2025-26 backs off from supporting the economy when it is badly needed, choosing instead to play to the gallery. What next for consumption?