A new report by the credit rating agency Crisit Ltd reveals that for the first time in two decades, rural India has recorded a growth rate faster than that of the cities and towns.
Crisil used the data provided by the National Sample Survey Organisation, which revealed that the spending in rural India between 2009-10 and 2011-12 was at Rs 375 crore. Comparative spend in urban India was way below at Rs 299 crore.
This increase in spending is being attributed to rise in household incomes due to greater non-farming job opportunities and government-initiated employment generation schemes. The report also pointed out that the migrant villagers increased remittance back home, resulting in increased consumption.
The report points out that the spending pattern has shifted from basic necessities, to such objects as television sets and mobile phones.
Statistics for 2009-2010 revealed that 42% of rural households owned TV sets, a significant jump from 26% five years earlier in 2003-2004.
In the 2009-2010 periods, 14% rural households owned a two wheeler (scooter/motorbike), which is double of that in five year ago period.
Semi-urban India contributed 26% to revenues of. Samsung India’s consumer electronics segment, as compared to 24% in 2009.
Samsung’s consumer electronic segment accounts for Rs 10,000 crore in all India revenue. The products being sold in this region are flat panel televisions, direct cool refrigerators and semi-automatic washing machines.
As reported in the media, the annual report by Reserve Bank of India (RBI), which was released this month, has reported that consumer prices in rural areas rose 9.6% between May 2010- 2011, while wages increased 21.1% in the same period. And between May 2011 - 2012, consumer prices rose by 8.1%, while rural wages increased by 18.7%.