Dodgy economics of the rural boom

The resurgence in rural incomes over the past decade seems to have been the greatest success of the ruling United Progressive Alliance (UPA) government. Buoyant rural consumption has partly absorbed the negative impact of slowing urban consumption on the economy. Yet, there are early signs of warning that the rural economy may be running out of steam after years of steady growth. The UPA’s neglect of rural investments in favour of short-term palliatives to prop up consumption could impose a heavy toll on rural India now.

Read Full Story>>