[abhi_kr]

I think the average Indian consumer has become more aware and conservative in their spending. Thanks to the wider reach of the internet, financial literacy is gradually increasing. Combine that with an economic slowdown and people are just more thoughtful about where they spend money. This is a natural consequence of a slowdown as Indian people are very risk-averse.

Prices of Cars and Houses have increased at a much higher rate than the Incomes, so people are delaying spending on expensive purchases. However, this is probably just one of the factors.

Demonetisation has definitely had an adverse effect on small individual businesses that operated on cash. Cash was the primary mode of transaction for maximum number of Indian people, especially the non-urban population. Unavailability of sufficient cash in the system for a long period of time has hit them hard. You cannot expect a barely literate rural person to suddenly start using digital form of payments.