A growing middle class increases the number of consumers with disposable income. Urbanisation concentrates populations and markets, changing lifestyles and increasing demand for consumer goods. Liberalisation policy increased the availability, variety, and affordability of consumer goods through increased competition and imports. Growing inequality, however, means a large segment of the population has limited purchasing power, which would restrict the growth of the mass consumer goods market rather than cause it to grow. Growth in inequality might fuel the luxury goods market, but not the broader consumer goods market.
Which of the following is not a cause of growing consumer goods market in India ?
Asked in OPSC CS Prelims 2017 · Topic: Nature of Indian Economy (Poverty and Income Inequality)
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