New Delhi, May 22 -- ITC Ltd on Thursday predicted India's consumption engines to keep firing as inflation cools, interest rates fall, and rain clouds gather, following a similar prognosis by industry leader Hindustan Unilever Ltd.

Consumption spending is expected to rise steadily as a good monsoon powers a continued rural recovery, the maker of Bingo chips and Gold Flake cigarettes said; alongside, lower inflation and the recent income tax cut are expected to boost disposable incomes in towns and cities. The company expects India's macro-economic variables to remain stable in the year ahead.

"The cumulative impact of pick-up in government capex in the second half of FY25 and front-loading of capex outlay in FY26, along with interest ra...