Letter to BS: Normal monsoon predictions raise hope of consumption uptick

This refers to “Normal monsoon predictions raise hope of consumption uptick” (April 18). The modern Indian economy provides importance to both agriculture and the consumer industry in order to ensure they are mutually supportive to growth. Economic activity has to be restored to the pre-demonetisation days with suitable amendments to the Goods and Services Tax to revive market confidence. Crisil itself has emphasised the necessity for such a step to increase the thrust on economic growth. The rural economy as it exists today is no longer a subsistence one but one that possesses great spending power. Agriculturists have a superior standard of living. Although monsoons continue to play a prominent role in agricultural production, villages are today developed enough to promote penetration of the consumer goods into their markets. A normal monsoon will ensure higher profits for agriculturists. Further, the increase in the minimum support price will also ensure greater spending power for the farmers. This will in return boost the consumer market. Markets for consumer durables will be able to meet consumer demand as per the prevailing environmental conditions. There are adequate markets for air conditioners, refrigerators and beverages in rural areas today and the festival season boosts their business turnover. Necessary steps have to be taken to ensure that prices are kept in check 
 

C Gopinath Nair  Kochi

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