Rising Rural Demand

Consumption in rural India is growing at 1.5 times the rate in urban India.

• Budget 2018-19 saw increased outlay of Rs 15,000 crore towards interest subsidy for short-term credit 
• The volume of institutional credit for the agriculture sector is raised to Rs 11 lakh crore from Rs 10 lakh crore last year with an aim to double farmers income by 2020
• A dedicated corpus of over Rs 16,000 crore was also allotted in the Budget towards building infrastructure for irrigation and dairy processing
• The highest-ever allocation to MGNREGA of nearly Rs 10,000 crore towards rural development programs will also boost rural consumption
• Higher rural consumption can also be attributed to increased purchasing power, stable inflation, augmented government spending towards rural infrastructure development and poverty elimination programs

This smallcase has companies that either derive a significant amount of their revenue from rural India or are striving to enhance their foothold across rural markets to benefit from increasing rural demand.