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INDIA: Rural demand to the rescue
India’s rural economy is in a sweet spot after an increase in government spending on rural programmes and four years of strong harvests. A rise in rural per capita incomes has created purchasing power for greater volumes and higher-priced products, cushioning the slowdown in urban demand for firms selling consumer goods and services. Policymakers and companies are counting on the 700 million-strong rural market to sustain overall consumer demand and economic growth.