{"id":116483,"date":"2021-07-05T20:18:40","date_gmt":"2021-07-05T14:48:40","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=116483"},"modified":"2021-07-06T12:43:15","modified_gmt":"2021-07-06T07:13:15","slug":"rural-economy-recovery","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rural-economy-recovery\/","title":{"rendered":"Rural Economy Recovery"},"content":{"rendered":"\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/opinion\/columns\/rural-economic-recovery-covid-pandemic-govt-spending-7389139\/\"><strong>Indian Express<\/strong><\/a><\/p>\n<p><strong>Relevance<\/strong>:<\/p>\n<p><strong>Synopsis: <\/strong>The government has changed its fiscal strategy. It went all out last year to shield the rural economy and households by way of free food, free gas, front-loading PM-Kisan payments, increasing MGNREGA allocation, moratoriums etc.<\/p>\n<h5><strong>Background<\/strong>:<\/h5>\n<ul>\n<li>A large part of the resilience of the rural economy last year stemmed from government support.<\/li>\n<li>Now, the government is providing support in a <strong>targeted and calibrated manner<\/strong>.<\/li>\n<li>For example, free food rations have been extended till November.<\/li>\n<li>The government also increased the amount of subsidy on fertilisers unexpectedly.<\/li>\n<\/ul>\n<p>This loss of lives coupled with the loss of livelihood can make rural spending more cautious.<\/p>\n<h5><strong>Trends in rural India:<\/strong><\/h5>\n<ol>\n<li>Firstly, rural India has been <strong>devastated<\/strong> by the <strong>vicious second wave. <\/strong>\n<ul>\n<li>At its peak last year in August-September, rural districts accounted for 2.28 million new cases.<\/li>\n<li>In April and May this year, this rose to 7.61 million.<\/li>\n<li>During August-September 2020, approximately 28,101 Covid-19 deaths occurred in rural districts.<\/li>\n<li>In April-May this year, the reported number was up 198 per cent at 83,863.<\/li>\n<\/ul>\n<\/li>\n<li>Secondly, rural India has been displaying signs of a <strong>\u201cFast-in Fast-Out\u2019\u2019<\/strong> phenomenon in the last few weeks.\n<ul>\n<li>For example, the <strong>CMIE rural sentiment index<\/strong> is up 2 per cent in June from the trough in May, even as the urban index is down nearly 3 per cent.<\/li>\n<li>Similarly, average daily registrations of agricultural equipment like tractors, trailers, and harvesters are up 237 per cent in June as compared to May.<\/li>\n<\/ul>\n<\/li>\n<li>Thirdly, rural India now seems to be more optimistic as compared to urban India.<\/li>\n<\/ol>\n<h5><strong>Way forward:<\/strong><\/h5>\n<ul>\n<li>The government needs to <strong>cut taxes on fuel and edible oils<\/strong> (it has been cut recently).<\/li>\n<li><strong>Investment in commodities <\/strong>to enhance supplies.<\/li>\n<li><strong>Simple supply-side responses<\/strong> to solve much of the problem related to sharp jump in food items of mass consumption.\n<ul>\n<li>Pulses have always been a bugbear in terms of their impact on inflation.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Nudge NAFED<\/strong> to sell\/release at least 15 per cent of the stock in 10 days. It will help cool the market.\n<ul>\n<li>In this context, the \u201cSUPPLYCO\u201d model, as currently prevalent in Kerala, could be effectively remodelled for NAFED to transfer maximum benefits to consumers and farmers in the entire crop-to-cash cycle.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>That is why any signs of a nascent rural recovery have to be supported by government intervention through aggressive supply-side and compassionate measures.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: Indian Express Relevance: Synopsis: The government has changed its fiscal strategy. It went all out last year to shield the rural economy and households by way of free food, free gas, front-loading PM-Kisan payments, increasing MGNREGA allocation, moratoriums etc. Background: A large part of the resilience of the rural economy last year stemmed from&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rural-economy-recovery\/\">Continue reading <span class=\"screen-reader-text\">Rural Economy Recovery<\/span><\/a><\/p>\n","protected":false},"author":10316,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[],"class_list":["post-116483","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/116483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10316"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=116483"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/116483\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=116483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=116483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=116483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}