Moneycontrol
Apr 19, 2017 01:38 PM IST | Source: CNBC-TV18

Normal monsoon could further accelerate rural recovery, FMCG key beneficiary: CLSA

Another normal monsoon along with increased allocation of the government on rural development, farm loan waiver and social housing could further accelerate rural recovery, CLSA says.

Mahesh Nandurkar of CLSA says the India Meteorological Department has forecast a normal monsoon season for 2017. Successive normal monsoons are positive for rural recovery.

After a normal monsoon in 2016, food-grain production and agri GDP growth have shown good growth, he says, adding some signs of rural recovery are also visible, with a marginal pick-up in rural wage growth post the 2016 monsoon.

Another normal monsoon along with increased allocation of the government on rural development, farm loan waiver and social housing could further accelerate rural recovery, according to Nandurkar. Key beneficiaries are HUL, ITC, Marico, Godrej Consumer and UltraTech Cement, he says.
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