The Covid19 pandemic has crippled India’s urban economies.
But fortunately for India, the rural economy is stepping up.
Over two thirds of the population and 70 per cent of the workforce of India are in rural areas. The rural economy is now 46 per cent of national income.
And India’s 650,000 villages have money to spend.
How is this happening?
Bharat, or rural India, is thriving – it is a combination of bumper crops, good monsoons and Government handouts.
In India’s auto sector, biggest demand is now rural – for tractors and two wheelers.
Rural unemployment peaked at 26 per cent in May but by June 21 had dropped to 7.3 per cent.
For once in a long time, the Indian rural economy is the good news and could be the big driver post this pandemic.