English
Specials
    Upgrade

    Moneycontrol

    Budget 2023Budget 2023

    PARTNERS

    • Tata AIA Life Insurance
    • Hafele
    • Motilal Oswal
    Live: Budget 2023: IT's demands
    Budget 2023
    Budget 2023
    you are here: HomeNewsBusinessEconomy
    Partnered ByBajaj AllianzBajaj Allianz

    Budget 2023: The worst for rural economy is definitely behind us, says Morgan Stanley Chief Economist

    Proportion of farmers in overall labour force had gone up due to the pandemic-induced lockdowns. That is now back to pre-pandemic levels, Upasana Chachra of Morgan Stanley told Moneycontrol

    Moneycontrol News
    January 19, 2023 / 01:29 PM IST

    After being adversely hit by COVID-19 lockdowns followed by high inflation, rural economy is now slowly and steadily improving with the worst certainly behind us, said Upasana Chachra, Chief India Economist, Morgan Stanley to Moneycontrol.

    “Rural demand is now steady and is improving sequentially. The informal sector that had been disrupted due to the pandemic is now seeing normalisation in labour force,” she said. Proportion of farmers in overall labour force had gone up due to the pandemic-induced lockdowns. That is now back to pre-pandemic levels, said Chachra.

    Sluggishness in rural demand has been flagged off by many FMCG (fast moving consumer good) companies, as well. Dabur India in its Q3 business update highlighted that the pressure on rural demand was further aggravated by the late onset of winter in north India.

    Marico’s Q3 business update was also downbeat. The Parachute oilmaker said its consolidated revenue will grow in the low single-digit on a YoY basis due to a muted recovery in rural demand amid elevated inflation.