Now Reading: Rural demand, digital access boost India’s bottom of pyramid economy
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Rural demand, digital access boost India’s bottom of pyramid economy
Rural demand, digital access boost India’s bottom of pyramid economy
A Moneycontrol analysis of government data shows several positive trends in India's bottom-of-the-pyramid economy. Rural wage growth has accelerated, with average daily wages for agricultural labour rising 8.7% year-on-year in July-September 2024.…
A Moneycontrol analysis of government data shows several positive trends in India's bottom-of-the-pyramid economy. Rural wage growth has accelerated, with average daily wages for agricultural labour rising 8.7% year-on-year in July-September 2024. The number of active workers on the e-Shram portal, which registers unorganised sector workers, has crossed 30 crore, indicating formalisation gains.
Digital inclusion is also improving: monthly active internet users in rural India grew 14% to 37.8 crore in 2024, narrowing the rural-urban digital divide. Additionally, bank deposits in rural and semi-urban branches rose 11% year-on-year to Rs 60.4 lakh crore as of March 2024, suggesting rising savings capacity among lower-income households. These indicators point to a gradual but steady improvement in economic conditions at the grassroots.
Indian Opinion Analysis
These trends matter because India's bottom-of-the-pyramid households, numbering roughly 90 crore, drive demand for essential goods and services. The e-Sharp portal crossing 30 crore workers is significant: it signals progress on formalising an economy where 90% of employment is informal. The key metric to watch is whether rural wage growth sustains above 6%, as it directly impacts consumption in the mass-market segment. The next big test will be the Q3 2024-25 GDP data, due in late February, which will show whether rural demand is translating into overall consumption growth.
Source: moneycontrol.com
This story was synthesised by AI from the source linked above.
