Rural income

Factors which led to increased rural income/consumption in past few years:

  1. Good monsoons
  2. High MSPs
  3. Increased global trade in agricultural commodities
  4. Government expenditure in rural infrastructure
  5. Construction and real estate boom led to non-farm income
  6. Spending on welfare schemes such as MGNREGA
Why rural consumption is not increasing anymore?
  1. Stagnant MSPs
  2. Agriculture exports have deteriorated due to global slowdown.
  3. Due to fiscal consolidation, public spending has been reduced.
  4. Sectors like construction and infrastructure are facing a slowdown and will take time to recover
  5. Government spending on the welfare schemes has become extremely prudent and cautious



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