Why GST cuts may not boost urban festive spending? Ambit explains slowdown triggers
According to an Ambit report, festive spending is expected to slow down this year due to low wage growth and subdued consumption in urban regions. Despite GST cuts, overall demand may not increase due to brand substitution and stagnant disposable income. Rural areas are expected to outpace urban demand, with tier 2 and tier 3 cities showing more robust growth due to higher wage increments.