After many years, Raunak returned to Rural Economy! How to take advantage of the people of the city, where to collect profit by investing money?

New Delhi. It is said that India lives in villages. Even though the city may have become modern and developed, the economy of India still revolves around the villages. There are 2 big reasons for this, one is a large part of the working age population in rural India and the other is 64% of India’s population in rural areas. This is the reason why rural economy contributes about half to India’s GDP. After the arrival of the Modi government, several steps have been taken to improve the standard of living in rural areas and it showed its advantage as improvement in the rural economy, which has stood at the decisive turn after many decades. But the question is how the people of the city can get the benefit of this boom in rural economy.

Fund manager Priyanka Khandelwal at ICICI Prudential AMC says that there were more employment opportunities in cities than in rural areas. Therefore, till now the rural economy was running dull, but the policies of the government have started creating big opportunities in this field too. To take this advantage, ICICI Prudential Rural Operations Fund has been launched. This fund provides investment in rural development and consumption subjects, balanced by opposite and structural investment opportunities. It tracks the Nifty India Rural Index, a Diversified Benchmark covering shares of 11 regions and 75 companies. It has large share of large-cap companies.

Why is this fund better

This fund emphasizes some structural subjects and poor performing areas, which have the ability to perform well with a boom in rural development. The goal of this fund with its multi -sector and flexible approach is to navigate the emerging rural landscape and provide permanent long -term returns. It also makes investors an opportunity to get more returns with rural growth.

Seeing big possibility
There is also a big possibility in the rural economy. Rural consumption and savings will be promoted through a scheme like Ladli Bahna. Agricultural indicators are also looking good which is a good sign for agricultural income in the near period. The government is also increasing the prices of crops, due to which the income of farmers is increasing. As the earnings of rural Indians improve, rural consumption is also likely to increase. However, with the increase in income, savings should also increase in rural areas and given the possibility of increasing deposits, the banking sector will also consider expanding its branch network. This is also likely to increase the reach of insurance in rural areas.

Roads will also be expanded

Connectivity is another subject which benefits from rural development. In the last decade, the number of investments made to improve the availability of road infrastructure and electricity, can benefit areas like telecom and auto. The availability of affordable telecom tariffs and cheap smartphones has ensured that rural Indians are connected to the world, resulting in awareness and aspirations in rural India. Public transport infrastructure in rural areas is not as much developed, with increasing disposable income, sales of two -wheelers and passenger vehicles in rural India can improve.

Increasing earnings will benefit
When domestic income increases, people wish to live a better life, look better and feel better. Many areas related to consumption benefit from this, as we have seen in urban India in the last decade. Rural per capita income is also close to the turn from which non-food consumption should increase and companies which focus on the service of these consumers can benefit from better development possibilities. Investors will get direct benefit of this.