Poor Monsoon not to severely impact rural spending: Reports
07/07/2015 12:05

Rating Agency, India Ratings has said that the impact of deficient monsoon on rural spending will be less than what it used to be earlier even as concerns over the annual rainfalls rose after a below normal July, media reported.

As per reports, the country has received normal rainfall with the last couple of weeks eroding the surplus accumulated in June.

Commenting on the issue, a Company official told the media, "The rural landscape of the country is changing. Rural income is no longer just the agricultural income."

"Higher growth of the industrial and services sector in rural areas over the years than of agriculture has increased the share of non-agriculture in rural NDP. This shift in rural income away from agriculture means that rural income is now less vulnerable to monsoons,” he added.

The meteorological department has predicted a below normal rainfall but the rating agency feels that it will not have much impact on rural spending.