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

282 drug abusers undergoing de-addiction treatment in Punjab: IGP

282 drug abusers undergoing de-addiction treatment in Punjab: IGP
Punjab Inspector General of Police (IGP) Sukhchain Singh Gill on Tuesday said that at least 282 drug abusers are currently undergoing de-addiction treatment across the state. Punjab Police has been promoting and creating awareness about section 64-A of the NDPS act, which provides an opportunity to a drug consumer, caught with a few grams of heroin or narcotic powder, for rehabilitation.

282 drug abusers undergoing de-addiction treatment in Punjab: IGP

Man arrested at Delhi airport, impersonation scam exposed

Man arrested at Delhi airport, impersonation scam exposed
The FIR accessed by IANS said that Vijai Mohandoss, a resident of Mangalur, Tamil Nadu, arrived on flight from Birmingham with a passport issued on November 8 2023. However, discrepancies were noticed when officials cross-checked his travel history. According to immigration records, Vijai had previously departed from India on January 17, 2020 using a different passport and later on March 10, 2021 from Bangalore using the same passport.

Man arrested at Delhi airport, impersonation scam exposed

Case filed against Rahul Gandhi, other Cong leaders: Assam CM

Case filed against Rahul Gandhi, other Cong leaders: Assam CM
Earlier on Tuesday, the Congress supporters clashed with the police as the administration did not permit Rahul Gandhi's 'Bharat Jodo Nyay Yatra' to enter Guwahati citing the possibility of heavy traffic congestion in the city. Following that, Assam Chief Minister directed the state DGP to file a police complaint against Rahul Gandhi for “provoking the crowd” during his Yatra.

Case filed against Rahul Gandhi, other Cong leaders: Assam CM

Uninterrupted power supply in UP for 24 hours from today

Uninterrupted power supply in UP for 24 hours from today
Uttar Pradesh will get uninterrupted power supply for 24 hours on Monday in view of the programmes scheduled for the Pran Pratishtha ceremony at the Ram temple in Ayodhya. According to orders issued by UPPCL chairman Ashish Kumar Goel, “Over the next 24 hours, all regions of the state will enjoy power without any interruptions in line with the chief minister’s directives.”

Uninterrupted power supply in UP for 24 hours from today

Will PM Modi now decide who will visit a temple, asks Rahul Gandhi

Will PM Modi now decide who will visit a temple, asks Rahul Gandhi
Gandhi said, “This is strange because Rahul Gandhi cannot go there while everyone else can visit the birthplace of Srimanta Sankardeva. Will PM Modi now decide who will visit a temple and when?” He and other senior Congress leaders and supporters staged a dharna at Haibargaon on the way to Sankardev's birthplace in Batadrava, while Congress MP Gaurav Gogoi and Batadrava MLA Sibamoni Bora went to the birthplace to settle the dispute.  

Will PM Modi now decide who will visit a temple, asks Rahul Gandhi

Half-naked bodies of Uzbek woman, Delhi man found in Hry resort

Half-naked bodies of Uzbek woman, Delhi man found in Hry resort
Half-naked bodies of a woman from Uzbekistan and a man from Delhi were found at the 'Mera Gaon Mera Desh' resort in Haryana’s Sonipat district, the police said on Monday. The bodies were found in a booked room where the duo had checked in on Sunday night. In Monday morning, on seeing the bodies from a window, the resort staff informed the police.

Half-naked bodies of Uzbek woman, Delhi man found in Hry resort