From Hindustan Times
''Just two years ago, India had its worst drought in three decades, resulting in high food prices.
A patchy monsoon trims food output and hits farm income, which supports two-thirds of the Indian population, or about 800 million people. Rural spending on most items — from television sets to gold — goes up with adequate rains and farm output. This aids economic growth, keeps jobs and investment going. A sharp rise in rural consumer spending explains why India's rural markets are important. For instance, rural buyers account for close to 40% of India's total motorcycle sales.
"We are more concerned about the impact of a weaker summer crop on primary food inflation (the whole price index)," said Chetan Ahya of Morgan Stanley Asia.''
read more
No comments:
Post a Comment