Mumbai, Aug 26
Domestic demand in India is set for a strong revival, with the Nifty expected to touch 27,609 in the next 12 months, a new report said on Tuesday.
The data compiled by PL Capital in its latest India strategy report said multiple factors, including benign inflation, government tax cuts, normal monsoons, and recent rate reductions by the Reserve Bank of India, are creating conditions for broad-based consumption growth.
The report titled “Ready for next leg of growth” highlighted that consumer price inflation has eased to 1.6 per cent, helped by food deflation, while rural incomes are getting a boost from normal rains.
A Rs 1,000 billion tax cut announced for FY26 is also expected to support demand. The report further added that the RBI’s 100 basis points rate cut will lower EMIs, encouraging demand for housing, cars, and personal loans.
At the same time, the upcoming GST 2.0 reforms, which will reduce and rationalise tax slabs, are likely to make goods such as automobiles, durables, medicines, and everyday staples cheaper, giving another push to consumption.