For the country’s largest consumer goods company Hindustan Unilever (HUL), rural market volume turned positive only in the April-June quarter. It had declined in double digits in the past. Its rival, Dabur India, which has a significant share in rural markets, is also seeing signs of improvement.
However, inflation was high for most of FY2023. This means the earnings of low-income families —those in rural areas as well as minimum wage earners in urban areas — have broadly been stagnant. But a moderation in inflation, apart from factors such as increased government spend and a rise in incomes, is expected to aid consumer sentiment and, in turn, spending.