India s rural economy faces challenges amid the overall economic growth, with disparities persisting. However, signs of rural demand revival emerge through increased two-wheeler sales and FMCG industry growth. The government and industry stakeholders are optimistic about further recovery, banking on factors like improved infrastructure and a normal monsoon.
Rajani Sinha discusses the disparity in rural India s growth and the expectation of interest rate cuts. Concerns remain about broad-based growth recovery, but improvements in two-wheeler sales and consumer non-durables indicate possible convergence of rural and urban demand. Sinha further says "we expect RBI would look at interest rate cuts towards the end of this year."
The FMCG sector had been hit by inflation, uneven rains during the kharif season and the resultant weak sentiment of the rural sector. However, sentiment is positive for the sector in coming months over expectations that the government will initiate measures to boost rural incomes and demand.
India Business News: Reserve Bank of India (RBI) has projected a GDP growth of 7 percent for the 2024-25 financial year. This projection is slightly lower than the estima