By Dripto Mukhopadhyay
Author is Director, Economic Research, Nielsen India. Dripto.Mukhopadhyay@nielsen.com
The economic situation and policies of the states has a direct bearing on economic welfare, and hence has significant impact on consumption demand. Although hitherto neglected, it can easily explain the fluctuations in consumption pattern for consumer and other goods, and help in the planning of business strategy.
Microeconomic volatility, one of the most crucial indicators for business, has hardly been studied in India (Garda & Ziemann, 2014). Reflected through fluctuations in the economic situation of households, microeconomic volatility has a direct bearing on economic welfare. Yet, it has remained an issue untouched by research aimed at understanding India’s consumer market. Macroeconomic situation can be linked to household income distribution. This article presents an analysis of two wheeler demand and its linkage in three states—Maharashtra, Tamil Nadu (TN)...