Fiscal stimulus 2.0: Consumption boost for agri, auto and FMCG companies

Rising farm income to aid firms having a bigger share of revenues from the rural sector

The slew of measures announced by the finance minister, coupled with a robust rabi crop and lower impact of the Covid-19 pandemic on rural India, is expected to improve rural incomes. The focus on agriculture is evident as 65-70 per cent of the outlay in the second and third tranches of the stimulus package was aimed at the farm sector.

Experts believe that steps, such as the Rs 74,300-crore farm produce purchases by the government over the past couple of months, coupled with ongoing procurement, should aid farm incomes. Given that crop output is a key growth driver for rural