Key Points
Economists said high-frequency data also points at a revival of rural consumption..
ETBFSIAccording to experts, a percentage rise in rural wages is expected to increase consumption by at least 20-30 basis points...
An increase in real rural wages backed by moderation in rural inflation and a pick-up in non-agricultural incomes may bridge the divergent recovery in consumption, witnessed with the easing of Covid-19, in this financial year, according to economists...
"This may help revive broad-based consumption demand, which is highly skewed in favour of goods and services consumed by the households belonging to the upper-income bracket," said Paras Jasrai, senior economic analyst at Ind-Ra, indicating that the K-shaped recovery may start getting corrected...
The improvement in rural demand is also indicated by other indicators such as two-wheeler sales, diesel consumption and continued growth in railway passenger traffic," said Gaura Sengupta, India Economist, IDFC First Bank...
