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LATEST NEWS UPDATES | Rural India's distress conundrum -Ishan Bakshi

Rural India's distress conundrum -Ishan Bakshi

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published Published on Jul 20, 2017   modified Modified on Jul 20, 2017
-Business Standard

Leading economic indicators suggest a recovery is underway

It’s difficult to make sense of what’s happening in the rural economy.

On the one hand, leading economic indicators suggest a recovery is underway. As Chart 1 shows, unemployment is down and real wage growth is up. Two-wheeler sales are also up — suggesting a recovery in household demand. Yet, rural sentiment has weakened of late as shown in Chart 2.

Please click here to access the charts.

What explains this dichotomy?


One possible explanation rests on the diverging fortunes of the landed and the landless, says a report by HSBC Global Research. The report classifies landless households as those owning less than one hectare of land, while the remaining form the landed class. The latter account for less than a third of the rural households, as shown in Chart 3.

Please click here to read more.

Business Standard, 17 July, 2017, http://www.business-standard.com/article/economy-policy/statsguru-rural-india-s-distress-conundrum-117071700042_1.html


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