Rural India: The next big consumption story
With the US slapping a hefty 50% tariff on Indian exports, many businesses are now turning their attention to small towns and villages for growth.
Thanks to low inflation and the prospect of a good harvest, spending in rural India—home to around 900 million people—has been rising.
In fact, rural consumption has outpaced urban areas for a year and a half, according to NielsenIQ.
Rural demand proving resilient
Brands like Pidilite and Britannia are doubling down on rural markets—Pidilite is building up its network in smaller towns, while Britannia is focusing on rural markets.
Rural demand is proving resilient even as urban industries feel the pinch from US tariffs.
With agricultural wages rising at their fastest pace in seven years and new tax cuts aiming to boost household spending, experts expect rural growth to stay strong over the next two to three quarters.