Close X
Friday, November 29, 2024
ADVT 
India

Indian economy shows signs of speeding up as rural demand surges: RBI

Darpan News Desk IANS, 18 Jul, 2024 01:01 PM
  • Indian economy shows signs of speeding up as rural demand surges: RBI

Mumbai, July 18 (IANS) The second quarter (July-September) of 2024-25 has begun with signs of quickening momentum in the Indian economy as an improvement in the outlook for agriculture and the revival of rural spending have turned out to be the bright spots in the evolution of demand conditions, according to the RBI's monthly bulletin released on Thursday.

With rural spending outpacing urban segments, the rural-urban divide is narrowing, as the recent monthly per capita consumption expenditure (MPCE) survey of the NSSO highlights.

This is on the back of rising fiscal transfers, an increase in the wage rate as typified by the MGNREGS and the rising volumes of remittances to rural households due to urban migration. These are some of the proximate factors that are boosting the effective spending power of rural households, the RBI bulletin states.

Consumption patterns revealed in the survey show that the share of conveyance, medical expenses and consumer services exceeds that of cereals in the rural MPCE. These developments have spurred hope that rural India is catching up with its urban counterpart and convergence can be envisaged, according to the report.

The rural recovery is yielding better results for companies in the fast-moving consumer goods (FMCG) segment, with earnings upgrades boosting stock valuations. This is reflecting an improvement in sales volumes as inflation haltingly moderates. Manufacturing is also gaining pace, with the purchasing managers’ index (PMI) having exceeded its long-run average in June on the back of new orders.

Manufacturing is a key pillar of the drive towards achieving higher levels of development, with its share needing to reach 20-25 per cent of GDP in order to establish India as a global manufacturing hub. This will boost employment in crucial sectors such as electronics, pharmaceuticals, textiles and automobiles while giving Indian products an internationally competitive cutting edge, the report adds.

The bulletin also states that global economic activity appears to be strengthening across advanced economies and emerging market economies and global trade in goods and services is gathering momentum which augurs well for India’s exports. On the back of exports of close to $780 billion in 2023-24 and a cumulative rate of expansion of 10.2 per cent in the first quarter, India is better prepared in 2024-25 to achieve exports of over $800 billion, it adds.

MORE India ARTICLES

BJP, AAP both failed to keep their promises to farmers: Bajwa

BJP, AAP both failed to keep their promises to farmers: Bajwa
Slamming the BJP-led Union government for its failure to fulfill its promise to provide a minimum support price (MSP) guarantee to the farmers, Punjab's Leader of the Opposition Partap Singh Bajwa on Monday said Chief Minister Bhagwant Mann had also reneged from his promises made to farmers at several occasions.

BJP, AAP both failed to keep their promises to farmers: Bajwa

Farmers say meeting inconclusive, stick to 'Chalo Delhi' call on Feb 13

Farmers say meeting inconclusive, stick to 'Chalo Delhi' call on Feb 13
The Central government delegation was led by Union Minister Piyush Goyal, and comprised Agriculture Minister Arjun Munda, while Punjab minister Kuldeep Dhaliwal and state government officials were also present. According to sources, the talks made a little headway as farmers are adamant on getting legal guarantee for the minimum support price (MSP) for the crops.

Farmers say meeting inconclusive, stick to 'Chalo Delhi' call on Feb 13

Money laundering in Chennai

Money laundering in Chennai
The Enforcement Directorate (ED) officials conducted simultaneous raids at the premises of three real estate promoters on Friday, an official said. Sources told IANS that the raids were conducted in connection with money laundering charges. The ED acted on a case registered by the Tamil Nadu unit of the Directorate of Vigilance and Anti-Corruption (DVAC).

Money laundering in Chennai

Drugs worth Rs 18.3L seized in Goa

Drugs worth Rs 18.3L seized in Goa
Goa Police on Thursday seized drugs -- charas, ganja and ecstasy -- valued at Rs 18.3 lakh, an official said here. Police said that the Anti-Narcotic Cell conducted a raid and found one person in alleged possession of drugs at Vagator in North Goa.

Drugs worth Rs 18.3L seized in Goa

India to put new meteorological satellite INSAT-3DS into orbit on Feb 17

India to put new meteorological satellite INSAT-3DS into orbit on Feb 17
India will put into orbit its new meteorological satellite INSAT-3DS on February 17 at 5.30 p.m. with the Geosynchronous Satellite Launch Vehicle (GSLV) rocket, the Indian space agency said on Thursday. According to Indian Space Research Organisation (ISRO), in its 16th mission, the GSLV aims to put INSAT-3DS into the Geosynchronous Transfer Orbit.  

India to put new meteorological satellite INSAT-3DS into orbit on Feb 17

Indian economy transformed from 'fragile five' to 'top five': White Paper

Indian economy transformed from 'fragile five' to 'top five': White Paper
Comparing the performance of the 10-year rule of the Narendra Modi government with that of the erstwhile UPA regime, the White Paper on Indian Economy tabled in the Lok Sabha by Finance Minister Nirmala Sitharaman highlights the fact that in 2014, India was among the 'fragile five' economies, but now figures among the 'top five' economies, making the third highest contribution to global growth every year.  

Indian economy transformed from 'fragile five' to 'top five': White Paper