India’s Sputtering Rural Growth Raises Stakes for Modi

(Bloomberg) -- Bloomberg Economics’ India growth tracker showed that a slowdown in the rural economy deepened in January, reflecting a crunch on spending by agricultural workers, whose costs of living have been rising while incomes fall. Prime Minister Narendra Modi, who is seeking another term in national elections, has been trying to address the increasing distress in rural areas, which account for roughly two-thirds of India’s population. The slowdown adds pressure on the government to expedite its new income-support package for small farmers, which it announced in the interim budget last month.

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