indian economy Good news for There has been a jump in the rural business confidence index. This information has been received from the report of India’s leading credit agency, CRIF High Mark. According to the report, the Rural Business Confidence Index has increased 9.6 points to reach 73.5 in 2022 compared to 2021. This index gives an idea of the landscape of rural business trends. In other words, the business scenario has improved. This will help speed up the growth rate of the Indian economy.
All types of businesses included
Micro, small, medium and large entrepreneurs were included in the survey. According to the survey, 70% of respondents expect government policies and plans to promote rural development. 59% expect growth in their business and 82% expect digital penetration to accelerate. In addition, 43% believed that there would be an increase in the skilled labor force and 69% expected an improvement in the quality of infrastructure in rural India. 64% expect an increase in the order book of their organizations, while 42% expect easier access to credit. Credit growth to retail organizations has increased by 85% in value terms and 25% in volume terms. On the other hand, there has been an increase of 30% in terms of value and 21% in terms of volume for microfinance institutions. Commercial loans to organizations grew 28% in value terms. However, volumes were down 5% over the same period.
Apart from this, the survey report states that in FY22, the average loan amount for the retail sector was Rs 1.3 lakhs while for microfinance it was Rs 37.5 lakhs. At the same time, this amount for business loans was Rs 1.33 lakhs. In FY21, the average loan amount for retail was Rs 1.9 lakh, for microfinance Rs 35 lakhs and for business loans Rs 98 lakhs.
The rural economy became the center of the Indian economy.
B Thiagarajan, Chair of the CII National Task Force on Rural Development and Migrant Workforce and Managing Director of Bluestar, said: “Today, more than ever, the rural economy is critical to the Indian economy. The increase in the Business Confidence Score from 63.9 to 73.5 reflects the impressive resilience during the COVID pandemic and rapid growth over the last 2 years. Rural India today is becoming the center for the emergence of new players and new models in terms of pace of development. We trust that the Index will act as an important guide for strategic decision-making towards inclusive rural economic development. Sanjit Davar, MD, CRIF High Mark, said: “According to the second edition of the Rural Business Confidence Index, credit demand in rural India has strengthened with rural loan disbursements up 26% in value and 26% in value between fiscal year 21 and fiscal year 22. In terms of volume, there has been an increase of 64%.
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