Slow growth of private consumption may not be a pan-India phenomenon: CRISIL
Slower growth of consumption demand may not be a pan-India phenomenon, Crisil said in a report that mapped state-level consumption using the Goods and Services Tax (GST) data.
They analysed the data for 17 states that account for 95 percent of the total GST collection.
There have been concerns over private consumption not growing at the pace at which the country's gross domestic product (GDP) has been growing. Private final consumption expenditure (PFCE) grew only at 3 percent in FY24 as against a GDP growth of 7.6 percent. In fact, PFCE grew slower than what it did a year ago (6.8 percent in FY23), while the GDP growth improved over the previous year (7 percent in FY23).
But Crisil's study of consumption at a more granular level showed that the lag in consumption growth isn't across the country. It showed that there is a wide variation among different states.
