Rural demand surge: Countryside drives India’s consumption rebound; urban growth seen picking up in Q3 FY26

Rural India’s consumption is outperforming urban markets, with a 7.7% year-on-year rise in Q2 FY26 driven by agricultural growth and stable wages. While urban demand remains muted, it is expected to gain momentum in Q3 FY26 due to policy measures and festive spending, particularly in discretionary categories like jewellery.