Good tidings for Bharat

Much depends on the revival of the southwest monsoon

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The uptick in India's rural economy—with gross value added in agriculture, forestry, and fishing registering an expansion of 4.6% in FY25—is good news for India's growth story. Higher farm incomes from record levels of foodgrain production due to an above-normal monsoon and robust prices have led to more demand for fast-moving consumer goods, two-wheelers, and tractors, which favorably impacts industrial production with a lag. Real wages were also up by 7% in FY25 and could grow by 6.5% this fiscal, although there could be downward pressures if there are adverse weather shocks, according to India Ratings. The bullish sentiments in the countryside are also reflected in the fact that three-quarters of rural households expect their incomes to increase in the next year, according to a bi-monthly survey conducted by the National Bank for Agriculture and Rural Development.