Despite the recent slowdown, India still appears well-paced to become the third largest economy ($5.4 trillion) in the world by 2027, with aspirations to reach $35 trillion GDP by 2047. For these aspirations to be fulfilled, it is critical for rural India to contribute significantly.
In the past few decades, rural India has witnessed massive changes that have helped it develop as a robust economic segment and is now a vital cog in the India growth story.
Rural India hosts 64% of India라이브 바카라 population as of 2023 and accounts for half of the country라이브 바카라 consumption.
The government has focused well in rural areas in the past couple of decades.
Improved road connectivity, increasing literacy rates, complete electrification, provision of amenities such as houses, water and sanitation, access to bank accounts, greater wireless penetration have all improved the quality of life in rural areas with positive economic outcomes as well. Thus, higher rising per capita, increased non-discretionary spending, greater participation of women in the workforce, employment in non-agriculture areas have been possible for rural regions.
The Centre as well as the larger states have focused heavily on providing welfare schemes and made greater outlays to rural ministries. A heavy thrust in manufacturing can also fuel rural development.
Fueling overall growth
The government is focusing on moving away from agriculture dependence for rural areas. The push for manufacturing via schemes such as production-linked incentive (PLI) is expected to help rural regions economically. New projects announced under manufacturing are up 3.5x from FY20 to Rs 13.2 trillion in FY23.
Agriculture used to account for 78% of rural employment in 1993, but 60% in 2024 as non-agricultural segments such as manufacturing, construction, trade & hotels, transport and other services account for the remaining 40%.
When the rural GVA (gross value added) data is sliced, it becomes clear that 60% of the GVA comes from non-agricultural activities as of 2021-22.
Rural per capita income has grown much faster than their urban counterparts over the past couple of decades.
The proportion of monthly per capita expenditures on beverages, services and durable goods are up 2x-2.5x in the last 20-odd years. On the other hand the proportion spent on cereals and pulses has fallen steeply from 26.1% to 6.1% in the last 25 years.
This change in the mix of monthly spending clearly indicates increased discretionary spending power in rural India.
Nearly 325 MSMEs or 51% of the total operate from rural areas. After many exogenous shocks (Demonetization, COVID, NBFC crisis etc.), these entities now seem back on the growth track.
Real rural wages are increasing in recent years, albeit slowly, after the COVID setback.
Twelve large states collectively spend Rs 3.1 trillion annually in welfare schemes. The Centre has made massive allocation (gross) of Rs 2.82 trillion for 2024-25. With several large States having significant agricultural populations going to elections from 2025-27, there may be more announcements from political parties on the welfare front.
Thus there is a positive trigger of government spending on schemes that would benefit the rural population for the foreseeable future.
From a narrow agriculture-focused segment, rural India now presents wide-ranging investment opportunities. Automobiles, telecom, power, consumer durables, FMCG, construction, Agri and Agri processing, chemical goods, tour related services are some avenues.
