The consumer durables market is back on a steady growth path, thanks to falling interest rates, decline in inflation and inflationary expectation, and funding support from banks.
Inflation in terms of consumer price index rose 4.41% year-on-year in September, higher than 3.74% a month earlier, but below the RBI’s expectation of 5.8% in January 2016.
“Besides the government’s key focus ‘Make in India’, a budgetary push, the early signs of revival in investment and consumption cycle coupled with a fall in inflation and interest rate are expected to drive the industrial recovery,” said the report authored by analysts with India Ratings & Research.
Despite investment showing signs of incipient recovery, a full-blown investment recovery may take anywhere between 12 to 18 months.
