High inflation, decline in wages and uneven rainfall have put a damper on rural demand
The rural economy contributes around 30 percent to domestic Gross Domestic Product (GDP) and India Inc is hoping for a strong revival in the rural sector after months of lacklustre consumer demand. “Demand revival has been uneven so far with high rural inflation, uneven rains and muted rural wage growth weighing on rural demand,” notes Rajani Sinha, chief economist, Care Ratings.