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IDFC Research Report
One of the major reasons emerging markets are forecasted to register less negative growth in 2020, versus Advanced Economies, is the higher share of agricultural output.
In India, there is optimism around agriculture, and thus rural, being the brighter spot in a contractionary growth year.
The Reserve Bank of India Governor, in the recently released Monetary Policy Committee meeting minutes, noted rural indicators have shown a sharp revival which, if sustained, can provide support to demand going forward.
In this note, we look at the current situation and the structural nuances of rural India to gauge the legitimacy of this optimism and the need for a nuanced policy approach.
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