Another bad news on the economy front, reduced consumption in rural areas, data is showing signs - and the situation may be worse

 Jansatta, P Vaidyanathan Iyer Published on: November 18, 2019 8:12 AM

India's position at the front of the economy does not appear to be improving at the moment. The situation may worsen in view of the way in which demand for goods is declining in rural areas. At the same time, on Friday, the government had stopped the 2017-18 survey related to domestic consumption from going public, citing many fluctuations and changes in the circumstances regarding consumption. But, all the indications are that since the beginning of FY 2019-20, the demand situation in rural areas has changed.

'The Indian Express' spoke to the people operating major companies of the country to find out all the signs of demand in rural areas. During this time it was found that FMCG, tractors, two-wheelers are not able to make demand in rural areas of the country. Apart from this, there is a reduction in demand for gold in other signs. Since, half of the demand for gold is in rural areas. In this situation, the condition of this sector is also not good.

For the thin state of the economy in the villages, there is not only a slight decline in the wages of labor. Rather, CPI for workers has also seen a fall in real wages since March. In terms of CPI-RL (Consumer Price Index-Rural Labor), the rate of real wage growth witnessed the sharpest fall during the month of August. Even though CPI-RL registered a growth of 3.4%, with a 6.23% rate. But the real wages fell by 2.83 per cent

Some economists say that the late monsoon in some big states - Rajasthan, Madhya Pradesh, Karnataka, Maharashtra and Gujarat - reduced farm income. In such a situation, it is also being considered as a basis for reduction in demand in rural areas. An economist associated with public finance said, "Job creation has not been done due to lack of investment for some years. In such a situation, income has also decreased. Even those migrating from the village to the cities could not get any special opportunity. Therefore, a large number of people stayed in the village. Whereas, on the other hand, after demonetisation, there have been few opportunities in agricultural work also. 

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