New Delhi, Nov. 8 -- Rural India continues to lead the country's consumption recovery, outpacing urban demand despite income tax cuts and GST 2.0 reforms aimed at stimulating city-based spending, according to Motilal Oswal Financial Services Ltd. (MOFSL) in its latest ECOSCOPE report titled "Rural Rules, Urban Follows."

The report noted that rural consumption has been on a steady upward trend since the second half of FY25, strengthening further in 2QFY26 with a 7.7 per cent year-on-year growth, the highest level in 17 quarters.

"We observed that rural consumption continues to outperform urban consumption despite the income tax cuts and GST 2.0 reforms, which are aimed at boosting urban consumption. Undoubtedly, urban consumption has rec...