New Delhi. According to a Reuters report on the Indian economy, this is the first time in January after 19 months when inflation in rural areas has increased faster than urban areas. Economic experts are calling it a positive sign, because the Indian economy is struggling with the problem of lack of demand.
Two-thirds of India's population depends on the rural sector and agriculture accounts for 15 per cent of the $ 2.8 trillion economy. The rise in inflation means that the demand and spending of people in rural areas has increased. Roopa Reg, chief economist at L&T Financial Holding, says the signs of a pick-up in demand in rural areas are positive.
In January, the rural inflation rate was 7.73 percent, higher than the urban inflation rate of 7.39 percent. For the first time since June 2018, the rural inflation rate was higher than the cities. On the condition of the Indian economy, it is being said that on one hand inflation has reached the highest level of six years, while the growth rate has reached the lowest level of 11 years. This condition is called stagflation. The Reserve Bank has set inflation target between 2-6 percent. He wants it to be around 4 per cent.
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