Rural demand outstripping urban welcome relief to economy: FKCCI
FKCCI is relieved that the uptick in rural demand, more than urban demand, is now said to be powering the economy, as per an assessment by top consumer companies.
In this regard, we would like to suggest that the Government at the Centre as well as at the State, and other stakeholders should work on this finding to strengthen the economy.
The assessment by top consumer companies that rural demand is now growing at a faster pace than urban, and that it is heading towards the pre-pandemic levels, should give a shot in the arm for the economy and boost investor sentiment.
The Indian economy is still dominated by the growth in rural areas which decide if the overall national growth goes north or stays flat.
Rural is now growing at 23%, faster than urban which is growing by 19% and this is an opportunity to upscale growth further through liberal financial schemes.
In this context, we would like to stress that if businesses are provided with timely and adequate credit they can bolster the growth and take it forward.
At the same time, we have to acknowledge that there are some tailwinds such as headline inflation and the threat of a depressing impact of El Nino in monsoon.
However, we strongly believe that the inherent resilience of Indian entrepreneurs if aided by enabling policies can sustain the growth momentum and hope that by next fiscal, India can realistically look at achieving double digit growth in the immediate future.
B.V. Gopal Reddy