The world’s most populous country is trying to revive its rural markets. Despite a recent uptick in demand, the signs of stress in India’s hinterlands are hard to rub off. Almost 70 percent of its people live in rural areas where agriculture is an important source of income. Yet, farming contributes less than 20 percent to the country’s GDP. In cracking this conundrum lies the biggest challenge and opportunity for small and big industry players. The mixed signals from towns and villages doesn’t make this task any easier.
There are ten proxy markers for gauging the state of the rural economy. These include two-wheeler sales, tractor sales, farmers’ terms of trade, agricultural exports, real agricultural GVA, farm credit, reservoir levels, and fertiliser sales. A simple average of these indicators, according to economists, suggests that the rural economy is not out of the woods.