Rural economy holds the key to economic revival4 min read 02 Jan 2018, 12:37 AM IST
Distress in rural economy is not limited only to the agrarian sector but has also spilled over to the larger economy with unemployment becoming a major challenge
2017 has been a bad year for the economy. The fact that the economy is in crisis, particularly the rural economy, is no longer a matter of statistics. The recent elections in Gujarat have laid bare the fissures in the rural economy that have been ignored for the last three-and-a-half years. With three of the major states ruled by the Bharatiya Janata Party (BJP) facing elections this year, the ruling dispensation can hardly afford to take things lightly. There is already some discussion on designing better mechanisms for price support measures for farmers in Madhya Pradesh and other states ruled by the BJP. While the political exigencies may lead to support for the rural economy, there is in fact a strong economic case as well, if aggregate economic growth has to be revived.