Quality goods & services' rural demand rising: SBI
15 Nov 2017 10:40 PM IST
New Delhi: The demand for quality goods and services is increasing in rural India reflecting improvement in living standards, an SBI report said on Wednesday.
"The good thing is that prices of discretionary consumption in rural areas has been on a declining trend since 2015-16.
"One possible reason for such is that big manufacturing / FMCG companies have significantly revved up their distribution channels in rural areas," SBI said in its 'Ecowrap'.
The SBI has factored in items of discretionary consumption as soft drinks, prepared meals, snacks, recreational and amusement, and personal care, among other things in the report.
In India, it said the consumption pattern of the people has been continuously changing with the change in their livelihood, mostly in rural areas.
"With the betterment of rural livelihood, the demand for better quality goods and services is increasing in rural areas," said Ecowrap.
The report noted that non-discretionary (food, electricity, fuel and light, clothing and housing) items have also witnessed declining trend with the decline much more steeper since July 2016.
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