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

Raghav Chadha highlights 25 'unfulfilled promises' of BJP in RS

Raghav Chadha highlights 25 'unfulfilled promises' of BJP in RS
Drawing attention to the BJP's pledge to forge a "New India" by "Amrit Kaal 2022", Chadha underscored the imminent arrival of 2024 and urged the government to make strides in fulfilling its commitments. He highlighted 25 promises made by the BJP that remain unfulfilled till date.

Raghav Chadha highlights 25 'unfulfilled promises' of BJP in RS

After ruling for 22 years, Congress almost wiped out in Mizoram

After ruling for 22 years, Congress almost wiped out in Mizoram
The Congress, which governed Mizoram for more than 22 years in different terms since 1984 under the Chief Ministership of party stalwart Lal Thanhawla, performed disastrously in the state assembly elections, result of which was announced on Monday. The Congress fielded candidates in all 40 seats but its nominee C. Ngunlianchunga is the only winner in Lawngtlai West seat by a margin of 432 votes.

After ruling for 22 years, Congress almost wiped out in Mizoram

Telangana: 80 newly-elected MLAs have criminal cases against them

Telangana: 80 newly-elected MLAs have criminal cases against them
Fifty out of the 64 newly-elected MLAs of Congress have cases against them, which comes to 78 per cent of ruling party MLAs. The NGO said that 19 out of 39 MLAs of BRS (48 per cent) have cases against them. The percentage is highest at 87 per cent for the BJP as seven of its eight MLAs have criminal cases against them.

Telangana: 80 newly-elected MLAs have criminal cases against them

13 unidentified bodies recovered in Manipur border district, probe on

13 unidentified bodies recovered in Manipur border district, probe on
Sources said that the bodies were recovered after the security forces reached the forested village after a heavy gun fight between the rival group in an area dominated by the Kuki tribal community. The bodies are yet to be identified.  

13 unidentified bodies recovered in Manipur border district, probe on

PM Modi congratulates ZPM on winning Mizoram election, assures of all possible support

PM Modi congratulates ZPM on winning Mizoram election, assures of all possible support
The remarks from the Prime Minister came after the ZPM won 27 seats out of 40 in the state and the MNF managed to win 10 seats. The BJP won two seats and the Congress one in the recently concluded assembly election, for which the counting took place on Monday.

PM Modi congratulates ZPM on winning Mizoram election, assures of all possible support

ED freezes cash, bank balances worth Rs 45cr after searches at 14 locations

ED freezes cash, bank balances worth Rs 45cr after searches at 14 locations
The Enforcement Directorate (ED) on Monday said it has frozen cash, bank balance and shares worth more than Rs 45 crore after it recently carried out searches at 14 locations in Mumbai and Chennai in a money laundering case linked to alleged misappropriation of Rs 129 crore.

ED freezes cash, bank balances worth Rs 45cr after searches at 14 locations