Wright Consumption Theme

India’s consumption engine is clearly back in gear. 

• Real private consumption accelerated to 7.2% in FY2024-25 and held a robust 7.0% in Q1 FY2025-26, signalling a broad-based pickup in household demand. 
• Disinflation has provided real income tailwinds: headline CPI fell to just 1.55% in July 2025, the lowest since 2017 with rural food inflation negative, freeing up spend for discretionary. 
• With GST 2.0 simplification coming up, research estimates such GST rationalisation will reduce headline CPI by ~20 to 25 basis points and lift consumption by ~1.6% of GDP, with the fiscal hit cushioned by cess/ buoyancy. Lower prices into the festive season are a direct volume catalyst for FMCG, white goods, and entry-level autos.
• Rural demand is leading again. FMCG value growth of ~13.9% in Apr–Jun 2025 with rural outpacing urban for the 6th straight quarter, and a distinct shift toward affordable premium products.
• Big-ticket proxies are stabilizing too, with passenger vehicle sales topping 1 million units for the second straight Q1, reflecting resilient urban consumption and credit availability.
• RBI survey readings show improving urban consumer confidence as incomes and employment perceptions firm up. 

Putting all of these together suggests a cyclical and structural recovery in Indian consumption is underway.

All of this makes a compelling case for a consumption focused basket now.