scorecardresearch

Festive cheer for MSMEs, retail: India’s largest bank SBI says consumer sentiment to pick up

Many FMCG and e-commerce companies are also pinning hopes on sales revival in the upcoming festive season.

cloth, yarn, sme
Man-made fibre exports have grown to contribute 16% to the total textile and clothing exports worth $40 billion in 2018-19
India has been witnessing an economic slowdown that is emanating majorly from rural India.

While several industries have been facing slowdown blues for some time now owing to lower than usual sales, the upcoming festive season in India may turn around the fortunes for retail and MSME sectors in India, India’s largest bank SBI said. “The coming quarter which is normally the festive season, with a lot of improvement in the sentiments, and with the reduction in the corporate tax, we are expecting that there would be uptake on the retail and MSME side,” Prashant Kumar, CFO, SBI, told ET Now in an interview. He added that the bank hopes for credit growth in upcoming months as consumer sentiment gets stronger.

Many FMCG and e-commerce companies are also pinning hopes on sales revival in the upcoming festive season. Some companies are also mulling festive season discounts to attract more customers, according to various media reports. Meanwhile, three of India’s biggest e-commerce platforms — Amazon, Flipkart and Snapdeal — have already announced their flagship sales as the country gears up for Navratri and Diwali and all of the firms have announced hefty discounts to attract more and more customers amid stiff competition.

Previously, market research firm had also said that FMCG companies are likely to witness better sales soon. “We are expecting the festive season to start picking up. October will have a bunch of festive events going on and we do expect Q4 or the October-December quarter to have better sales,” Prasun Basu, President, South Asia, Nielsen told CNBC TV-18 in an interview. While customers have been holding on spending, it is expected that customers will start going to the market soon, according to a recent LocalCircles survey.

India has been witnessing an economic slowdown that is emanating majorly from the rural India, according to a Nielsen report. Fuelling the slowdown are also a gamut of factors like agrarian distress, NBFC crisis and raising unemployment. The government, in the meanwhile, has been undertaking reforms to boost consumer sentiment and drive growth.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.