The Economy Of The Villages Is Getting Stronger In India

The economy of the villages is getting stronger, but it will take time to recover completely.

Rural consumption grew by 6.6 percent year-on-year in the first quarter of FY21 as against a growth of 16.4 percent in the first quarter of FY2022.

This has been disclosed in the Ecoscope report of Motilal Oswal Financial Services Limited (MOFSL).

27% year-on-year growth in urban consumption.

In contrast, urban consumption grew by 27 percent year-on-year during the previous quarter, primarily at a low of 18 percent year-on-year in Q1 2021, according to the report.

On the other hand, rural consumption continued to grow in Q1 2022, despite the second wave of COVID-19.

The economy of the villages is getting stronger: Re-examining rural and urban consumption trends.

MoFSL re-examined rural and urban consumption trends to analyze the adverse impact of the (national) lockdown during the first wave, during the second wave (localized) lockdown with six different rural COVID cases.

There has been rural consumption, urban consumption, non-farm sector, agricultural sector, and government assistance.

Agriculture Sector GVA up 6.6 percent in Q1 2022

According to MoFSL’s Economic Activity Index update for Q1 2022, the agriculture sector GVA grew by 6.6 percent in Q1 2022 (versus 9.2 percent year-on-year growth in Q4 2021).

The index increased by more than a quarter.

On the other hand, the GVA of the non-farm sector grew by more than one-quarter in the previous quarter, with a 10.8 percent year-on-year growth in Q4 2021 and a 16.1 percent year-on-year contraction in Q1 2021.

This clearly means that the low base non-farm sector has been the primary source of dramatic growth in GVA in Q1 FY22.

Air India will be sold or not, the aviation minister has given time till this date. Regarding the disinvestment of AIR India.

Union Civil Aviation Minister Jyotiraditya Scindia has said that the process of disinvestment of the huge debt-laden state-owned airline Air India is on track.

The next step will be taken in the event of financial bids for it by September 15. Scindia said in Indore that our process for disinvestment of Air India is on track.

For this financial bids should come by 15 September. After the receipt of these bids, the next step will be taken.

The Civil Aviation Minister also informed that the government is moving fast in the direction of implementing the rules for flying drones in the country.

He said, “We have made rules for drone operations in consultation with the Ministry of Defense and the Ministry of Home Affairs.

From the point of view of security, we will divide the country into red, green, and yellow zones for drone operations.”