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Festive spending lifts India’s high-frequency demand data despite external tariff headwinds
Festive-season data show strong discretionary demand in India even amid tariffs, supporting consumption outlook for FY26 and offsetting export pressure.
High-frequency indicators from the recent festive season show robust discretionary demand across automobiles, appliances and consumer goods, according to a report by SBI Mutual Fund. The report noted that despite lingering external headwinds and tariff pressures, retail traction in Tier-1 and Tier-2 markets improved significantly. While exports remain under pressure and input-cost inflation persists, domestic sales strength offers a cushion for FY26 growth projections.
The mutual fund house expects the momentum to support consumption and investment indicators over the coming quarters, provided global trade disruptions remain contained.