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Consumption in rural India hits a 7-year low -Suneera Tandon

-Livemint.com * Farm distress, stagnant incomes have eroded demand, shows Nielsen data * Consumption in rural areas grew at 5% in terms of value in the Sep quarter, while in urban India, the growth was 8% Rural household consumption slumped to a seven-year low in the September quarter, in a sign that the prolonged agrarian distress and near-stagnant rural incomes have eroded demand for consumer goods, market researcher Nielsen said. Consumption of packaged consumer...

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Lowering corporate tax rate is good but not enough -Renu Kohli

-The Telegraph While the corporate tax cuts are a long-term positive, this does not dismiss the case for near-term consumption support The government relented on fiscal discipline to steeply reduce corporate taxes on September 20; the lowest is now 17 per cent for new manufacturing units. The stock market soared, seeing earnings grow after successive downgrades for nearly nine years — about the same time as the investment shortfall that lower taxes...

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What can be done to address the demand drought in our economy? -Suresh Seshadri

-The Indian Express Why tax sops are not enough? What can policy makers do? The story so far: A worryingly persistent slowdown dragged economic growth in India down to 5% in the fiscal first quarter, its weakest pace in more than six years. And while the recent weeks have seen the possible reasons for the slowdown, as well as the government’s policy measures to ostensibly help revive the economy being put under...

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Can we prevent rural suicides? Yes, it is possible, says a recent WHO-FAO publication

Almost one in every five suicides in the world is committed by self-poisoning with pesticide, which mostly occur in rural, agricultural areas of low- and middle-income countries (LMICs), states a new publication entitled 'Preventing Suicide: A resource for pesticide registrars and regulators'. Published jointly by the World Health Organization (WHO) and the Food and Agriculture Organization of the United Nations (FAO), the booklet says that the adoption of green revolution technology...

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Government to peg MGNREGA wages to inflation in bid to hike incomes -Priscilla Jebaraj

-The Hindu Stimulus measure to link pay to consumer price index with annual revision. Staring at a slump in rural demand and a slowdown in the rural economy, the Centre plans to inject more money into the UPA’s flagship Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme by linking wages under the Act to an updated inflation index, which will be revised annually. It hopes this will increase wages, thus increasing...

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