This comment tells the reality of the Indian economy. Due to this the BJP government’s“Developed India” The narrative is punctured. Nestle chief said that the middle class is shrinking in India, But at the same time the demand for expensive things is increasing.
What the head of the Indian unit of the multinational company Nestle said is explosive and a sharp reaction from the ruling party supporters was expected. This comment of Suresh Narayanan tells the reality of the Indian economy. This punctures the narrative of “developed India” of the BJP government. Narayanan has said that the middle class in India is shrinking, but at the same time the demand for expensive things is increasing. This is a confirmation from a very large company in the consumer goods sector that the Indian economy is continuously transforming into a K-shape.
That is, an economy in which a handful of very rich people are getting richer, while a large part of the middle class is going back below the poverty line. Narayanan said, ‘Earlier there used to be a middle group – the middle class – within which most consumer goods companies like us did business.’ Narayanan’s concern is that the sales of companies like Nestle are not increasing. But as soon as his statement became popular, the attacks on him intensified on social media. Questions were raised on the quality of Nestle’s products. But this story is not just about Nestle.
Recently, companies like Hindustan Lever and Tata Consumer Products have warned that demand in urban areas is falling. The annual sales of these companies have still increased by two to three percent, but Reliance Retail in its recent report has said that there will be a decline of 3.5 percent in sales. The company said that this has happened due to reduced demand for fashion and lifestyle products. Some time ago, it was also reported in a media report that retail sales of gold have fallen this Diwali season, while wholesale sales have increased. Retail sales have fallen because record inflation has made this metal out of reach of common middle class families. Obviously, this story is not about any one particular company. This is a general trend in the market, which is not going to be reversed by trolling campaigns.