New Delhi, Nov 8 || Rural consumption continues to outperform urban demand in the country despite income tax cuts and GST 2.0 reforms aimed at boosting urban consumption, a report said on Saturday.
The report from brokerage firm Motilal Oswal Financial Services Limited (MOFSL) said that rural consumption outshines because of income guarantee schemes, better rainfall outcomes, NBFC-led credit growth, easing input costs and steady MSPs.
MOFSL’s base case projection was that real GDP growth will touch 6.8 per cent for FY26, with a 20–30 basis‑point upside if tariff uncertainties abate, and a nominal GDP growth projection at 9 per cent.
It maintained that urban consumption has recovered since implementation of GST reforms and also from Q3FY25, but rural consumption outshined.