CLSA warns India household incomes lag as FY27 growth slows
A new analysis from CLSA says India's household incomes aren't keeping up with how much people are spending.
To make ends meet, more families are dipping into their savings and taking on extra loans.
CLSA is also predicting that the country's economic growth will slow in FY27, with GDP expected to be around 6% overall in FY27, while growth is expected to slow to about 5.5% in the second half of the financial year, thanks to weaker spending, government budget limits, and unpredictable weather.
Nikhil Gupta says real incomes slowed
Nikhil Gupta, India Economist at CLSA, points out that real income growth has slowed a lot this year.
Data shows wages, whether in farming, MNREGA jobs, or companies, aren't rising much, while more people are juggling multiple loans just to keep up.
Even though consumer spending looks steady for now, CLSA warns that if incomes don't start growing again, things could get tougher down the road.