Home / Economy / News / Covid-19 crisis: Revival in rural demand overstated, say economists

Covid-19 crisis: Revival in rural demand overstated, say economists

A recent note brought out by Credit Suisse says that net gain from the government support measures may be just Rs 7,500 crore a month

Rural economy, agriculture, farming, tractors

Premium

CARE Ratings chief economist Madan Sabnavis said prices of farm produce will come down in the markets for kharif crops because of very good monsoon conditions

Indivjal Dhasmana Sanjeeb Mukherjee New Delhi

5 min read Last Updated : Jul 27 2020 | 6:05 AM IST

The often-repeated theory of demand generation in the rural economy due to the government’s intervention may be overstated, feel economists, even though they cite different reasons for their thesis.

A recent note brought out by Credit Suisse says that net gain from the government support measures may be just Rs 7,500 crore a month, which constitutes 0.9 per cent of the rural gross domestic product (GDP). It says Rs 35,000 crore of the fiscal support a month is offset by Rs 27,500 crore per month decline from lower remittances, weak agri-perishables and low farm credit growth.

However, Pronab Sen, who

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in