The RBI cited that easing
Rural areas are witnessing a revival in demand, with increased purchases of
"The demand for fast moving consumer goods (FMCG) is also accelerating as companies target older customers with healthy lifestyle products in response to rising longevity and affluence and younger ones with premiumisation," the RBI added.
In addition to this, the demand boost is being further propelled by the increased hiring activities from e-commerce and logistics companies, particularly ahead of the festival season. Notably, hiring by the companies is expanding beyond metropolitan areas, reaching Tier 2 and Tier 3 cities.
E-commerce companies are ramping up their workforce in preparation for increased online sales, with logistics hiring rising to support warehousing, transportation, and delivery services, ahead of the festive season.
Telecom, internet service providers, and related industries are also expected to contribute significantly to the employment surge. RBI added, citing the reports from TeamLease Services that about 62% of companies in these sectors plan to expand their workforce by the end of the year, which will further stimulate household income and spending in the country.
Going further, RBI noted the sluggishness in the agriculture sector in first quarter, however, it added that this was compensated by the manufacturing and services sector."The underperformance of agriculture in Q1 was compensated for by a buoyant