Decoding Slowdown: From biscuits to cars; it is a deathblow for the economy as demand dries up

Decoding Slowdown: From biscuits to cars; it is a deathblow for the economy as demand dries up

The key to lifting the gloom is in raising the income of working population through better wages to revive consumption demand

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Income of the working population needs to be raised through significant increase in urban and rural wages to revive consumer demands.Income of the working population needs to be raised through significant increase in urban and rural wages to revive consumer demands.
Prasanna Mohanty
  • Aug 23, 2019,
  • Updated Sep 23, 2019 4:41 PM IST

Last week, the Britannia Industries' managing director sent shockwaves, so to speak, by remarking that people were thinking twice before buying even a packet of biscuit for Rs 5. Another leading biscuit maker, Parle Products, joined in earlier this week to say that it might have to lay off 10,000 workers. All this is because consumer demand has collapsed.

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This phenomenon is not limited to the FMCG segment by any stretch of the imagination. The auto industry has been in turmoil for quite some time with some of the leading players screaming aloud about inventory pile-ups, suspension of production and job cuts by the thousands.

None of this, however, should come as a surprise. The telltale signs have always been there but little attention was paid.

Last week, the Britannia Industries' managing director sent shockwaves, so to speak, by remarking that people were thinking twice before buying even a packet of biscuit for Rs 5. Another leading biscuit maker, Parle Products, joined in earlier this week to say that it might have to lay off 10,000 workers. All this is because consumer demand has collapsed.

Advertisement

This phenomenon is not limited to the FMCG segment by any stretch of the imagination. The auto industry has been in turmoil for quite some time with some of the leading players screaming aloud about inventory pile-ups, suspension of production and job cuts by the thousands.

None of this, however, should come as a surprise. The telltale signs have always been there but little attention was paid.

Read more!
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