The Seen and the Unseen - hosted by Amit Varma cover image

Ep 252: The State of Our Economy

The Seen and the Unseen - hosted by Amit Varma

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Rural Demand Is Boomy

The upside was that it created rural demand, which became the buzzword for every single corporate in india. The downside of it was that it was achieved largely by mesb's going up. And so it fell back into higher inflation. So all those people who are living in ruleres dare purchasing power of goods coming out of the cities has gone down. We don't know how to bridge that gap because, as we've seen, there's trade off. You give them higher remuneration, you create inflation. Now this is something that we have known since 19 80.

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