New Delhi, Jan. 5 -- Household consumption in India is likely to continue outpacing capital expenditure (capex) in 2026, supported by a fiscal policy tilt towards consumption and a revival in credit, even as corporate investment sentiment remains cautious, according to a report by Nuvama.

Drivers of Consumption Growth

The report attributes consumption's relative resilience compared with capital expenditure to three factors: during slower economic growth, consumption tends to hold up better than investment; fiscal policies are increasingly geared toward supporting consumption, aided by improving credit availability; and while overall income growth remains modest, demand from lower- and middle-income households is expected to remain stron...