Big poll spends unlikely to lift rural demand

Economists suggest that rural consumption in India needs further government support and sustained capital expenditure to become broad-based in the coming quarters. The upcoming general election is unlikely to provide a significant boost to consumption. Instead, broader economic growth, easing inflation pressures, and government measures such as rationalizing GST rates and increasing allocations to rural schemes could support demand. Automakers also do not expect a huge sales boost from the elections, as historical data shows no real correlation between election years and sales.

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