What the Nestlé India chief meant when he said the middle class is shrinking
The middle income segment—the largest in terms of consumption—may not really be witnessing any reduction in size, but factors such as unemployment and inflation are sure contributing to a sharp dip in purchasing power.
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How well rural consumption is doing is subjective. What isn’t subjective is how growing indebtedness, combined with stagnant income growth, is creating a tinderbox for households, banks and consumer companies that no one is talking about.
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As the private lender reeled from serial scandals, Hinduja insisted he was merely a shareholder. Board-level links, conflicts of interest and regulatory blind spots suggest otherwise.
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