New Delhi, June 18 -- The revival in household demand across India remains fragile as high levels of debt and weak income continue to pose serious challenges, according to a recent report by Systematix Research.

The report added that while some signs of improvement are visible, the broader recovery is expected only in the second half of FY26.

It said, "Evidence of demand revival still tentative...Rural purchasing power recovers modestly due to disinflation, but stagnant incomes limit gains".

The report highlighted that rural purchasing power has seen a modest recovery, mainly due to softening inflation.

However, stagnant incomes are limiting any significant gains. In urban areas, consumer sentiment remains low, affected by weak job co...