How do you see the Budget impacting rural demand and will it help to increase rural incomes?
Answer
Answer
There was a massive allocation of Rs.284,000 crore to the farm and rural sectors in India in the budget. The agriculture credit target for next year has also been set at Rs.15,00,000 crore. Government is still committed to doubling farm incomes by 2022 but now the focus will be less on pure agriculture and more on related areas. For example, there is a budget proposal to expand fisheries and create 500 fish farmer producer organizations. This led to gains in stocks like Avanti Feeds and Waterbase.
In addition, the announcement that rail services would be equipped with air conditioning freight cars and the government will provide viability gap funding for warehousing could also be a big boost to stocks like CCI. In addition, the FMCG stocks could benefit too