Festive Demand Outlook: Will Inflation And Weak Monsoons Dampen Consumer Spending This Season?

India’s festive season is approaching, but inflationary pressures, deficient monsoons and a high base from last year could weigh on consumer demand. Auto prices have already seen increases, adding another challenge for discretionary spending. Mayuresh Joshi, Head Equity Research, William O Neil India, explains how festive demand could shape up across September and October and why comparisons with last year may look weaker. Despite near-term challenges, he believes India remains better placed than many emerging markets on several metrics. The focus now will be on consumer spending, rural demand and how global market conditions evolve through the second half.