New Delhi, Nov. 4 -- India's consumption demand is poised for a strong rebound in the coming quarter, driven by the twin engines of rural recovery and tax-led urban momentum, according to a research report by Bank of Baroda.

The report highlights that deferred demand from the previous quarter, coupled with the effects of GST rationalisation and a favourable monsoon, will translate into a sharper pickup in sales across sectors in Q3 FY26.

"Going forward, we expect revival in demand conditions to have full effect. This will be supported by rural demand on the back of better sowing and good monsoon. Urban demand will also get support from the tax-related reforms," the report said. It noted that companies remain optimistic about the near-te...