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As Covid-19 reaches hinterland, is India's rural growth story getting over?

A recent report by Credit Suisse cautions that the spread of Covid-19 infections to Tier-III and -IV cities could stall the growth momentum

The rise in rural infections, G Chokkalingam, founder and chief investment officer at Equinomics Research says, is a cause of concern as the rural economy constitutes 47 per cent of India’s total gross domestic product (GDP)
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The rise in rural infections, G Chokkalingam, founder and chief investment officer at Equinomics Research says, is a cause of concern as the rural economy constitutes a large part of India's GDP

Nikita Vashisht New Delhi
Nearly five-months into the Covid-19 pandemic, analysts have now started to question as to how far rural India will be able to pull the Indian economy out of the severe contraction it is in. A recent report by Neelkanth Mishra managing director, India Strategist and co-head of equity strategy for Asia Pacific at Credit Suisse cautions that with Covid-19 infections spreading to Tier 3 and Tier 4 cities, which some call the rural belt, could stall the growth momentum.

And the data does hint at this possibility of a rampant spread of the virus in the rural belt. With a

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First Published: Jul 22 2020 | 3:27 PM IST

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