With higher consumer confidence following the rise in vaccination levels and sitting on already-built-up-savings through the pandemic months, the top 20 per cent of upper-income consumers will help recover the near-term consumption demand, as per a report.
These consumers account for the bulk of the rural and urban demand.
While the economy fared the worst last year, contracting a record 7.3 per cent due to the pandemic, the problem with the economy had begun much earlier in FY16 when consumption demand began to disappear from the economy. The pandemic only added to the contraction.