"rural-demand"

India’s auto retail sector began FY27 strongly, with record April sales of 26.1 lakh units, driven by two-wheelers and rural demand. Federation of Automobile Dealers Associations reported growth across segments, reflecting sustained consumption momentum and cautious optimism ahead 

Chief Economic Adviser V Anantha Nageswaran said urban demand may be stronger than reflected in official data, citing UPI growth and SME spending. He projected FY26 growth at 6.3–6.8 per cent and emphasised the need for innovation to sustain exports

The Economic Survey expects the government's emphasis on micro, small, and medium enterprises (MSMEs) and good rabi crop production to accelerate growth and employment in the economy

This prevented the spread of Covid-19 in rural areas and production activities and in turn, rural consumption largely remained unimpacted.

Rural demand indicators like tractor sales recorded a growth of 172 per cent and 36 per cent compared to a low base in March 2020 and even the pre-Covid month of March 2019 respectively.

The volume growth is also likely to support operating margins in FY22 at around 20 to 21 per cent, notwithstanding some cost-side pressures, it added.