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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 bureau CRIF High Mark. According to the report, the Rural Business Confidence Index has increased by 9.6 points to reach 73.5 in 2022 as compared to 2021. This index gives an insight into the landscape of rural business trends. That is, the business scenario has improved. This will help in accelerating the growth rate of the Indian economy.
All types of businesses included
Micro, small, medium and large businessmen were included in the survey. According to the survey, 70% of the respondents expect that government policies and schemes will 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 workforce 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 terms of value and 25% in terms of volume. On the other hand, there has been an increase of 30% in terms of value and 21% in terms of volume for micro finance institutions. Commercial loans to organizations grew by 28% in value terms. However, the volumes declined by 5% during the same period.
Apart from this, the survey report states that in FY22, the average loan size for the retail sector was Rs 1.3 lakh, while for microfinance it was Rs 37.5 thousand. At the same time, this amount for commercial loan was Rs 1.33 lakh. In FY21, the average loan amount for retail was Rs 1.9 lakh, for micro finance Rs 35 thousand and for commercial loan Rs 98 lakh.
Rural economy became the center of Indian economy
B Thiagarajan, Chairman, CII National Task Force on Rural Development and Migrant Workforce and Managing Director, Bluestar said, “Today, more than ever, the rural economy is central to India’s economy. The increase in the Business Confidence Score from 63.9 to 73.5 reflects the impressive resilience during the COVID pandemic and the rapid growth in the last 2 years. Rural India today is becoming the hub for emergence of new players and new models in terms of pace of development. We are confident 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, “As per the second edition of the Rural Business Confidence Index, credit demand in rural India has strengthened and rural loan disbursements grew by 26% in value and 26% in value between FY21 and FY22. In volume terms, there has been an increase of 64%.
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