India has achieved 'escape velocity' - credit card data.
Sep 01, 2023 12:46 am
Good morning my dear readers,
It is a Blue Tokai Coffee morning for me.
(Tastes better on the weekend, actually everything is better on weekends =))
India has achieved 'escape velocity'.
*In space terms, after launch, a Rocket needs to achieve 'Escape Velocity' to exit the Earth's Gravitational Pull.
(Escape Velocity is just enough speed to exit the earth's gravitational pull)
Credit Cards, just like a popular Space Program, can say a lot about a country's situation.
The credit card industry witnessed a historically high spending at Rs1.45tr in Jul 2023 (+24.9% yoy/+ 5.5% qoq).
(Basically, Indians have spent the MOST they ever have, via Credit Cards in July).
This is saying a story, that firstly, the upcoming festive period is going to be a total HIT.
But more importantly, Indian consumers are showing similar habits like that of Americans, who also love to spend on their Credit Cards.
This was a very important consumer habit that made America Great.
And I believe that this Credit Card frenzy in India is going to be a structural shift towards Indians accepting 'Debt' as a part of life, atleast the younger generation.
The byproduct of this massive spending is that the economy is going to thrive as long as this frenzy continues.
All this spending is going to trickle from top to bottom of our amazing economy.
Businesses will flourish, Jobs will be secure, Spending cycle will continue.
Again, Credit Card spending is not the most important indicator, but it is one of the many indicators that are pointing towards significant economic prosperity in the coming years.
Ps- I was talking yesterday to a Food company that supplies to QSRs and the gentleman was quite bullish about the prospects of the QSR segment in India.
He told me that he does not expect resistance towards growth. The sector itself can grow 10-15% annually for a long time.
All such commentary just makes my day and keeps me hopeful for India's future.
Something absolutely beautiful is unfolding.
Ok, I have no interest in having a 'Cold Coffee', so I will end this newsletter here and go back to my somewhat still hot coffee =)
Also, a big shout out to Filter Coffee. Man, it is something else. Whoever invented Filter Coffee, my good wishes for the person :)
Have a good day.
Ps- Scam 2003 starts streaming tonight. I think it could be an interesting show.
If you have any movie/show recommendations for me, kindly email me back.