Rural spending getting captured in urban consumption; women SHGs helping boost incomes: SBI Research

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Improvements in physical infrastructure and connectivity have impacted rural demand and supply patterns, with rural spending getting captured in urban areas, according to latest SBI research...

A farmer can travel many kms easily to buy and sell things and these purchases will be counted in urban numbers (implying less numbers captured for rural and semi-urban areas) even though they are bought by primarily rural populace, SBI researchers said in a report released Monday.. The researchers noted that the phenomenal growth in income of self-help groups may also be a factor contributing to this shift, which has been helped by better banking linkages and access to credit...

The money credited to accounts of female self-help group members, which is used as a proxy for income, is expected to be 2.8-times more in rural areas and 3.2-times more in semi-urban regions in FY24 compared with FY19.. 72.7% of Rural SHG POS transactions are in Metro Region and are outside their districts..

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