MUMBAI | NEW DELHI: The government's spending plans to bolster rural development and providing higher income for farmers bode well for consumer companies that are betting on the country's vast hinterland to boost their sales. "It should definitely boost rural consumption and continue to drive the revival momentum," said Saugata Gupta, managing director at Marico , maker of Parachute hair care oil and Saffola cooking oil.Nearly 40% of all branded products of daily use are sold in rural areas, home to about 800 million people whose purchasing behaviour depends on farm output. While rural India was expanding at more than twice the urban growth rate until 2015, the pace tapered off in the past two years due to below-average monsoon.Companies say rural markets are now on the growth path again. Adi Godrej , chairman at Godrej Group, doesn't think so. At an overall level, the budget was disappointing," he said.

Source: Economic Times February 01, 2018 17:59 UTC