InvestorQ : Is it true that in this quarter, the rural demand for many goods has been better than urban demand?
Priyanka N made post

Is it true that in this quarter, the rural demand for many goods has been better than urban demand?

Answer
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Riken Mehta answered.
3 weeks ago


Robust sales for 2 wheelers and 4 wheelers from the rural areas also support the fact that rural demand is picking up. Also spread of covid was largely in the urban areas and less in rural areas, this helped the rural demand and supply. Better monsoon will pave the way for good agriculture output this year


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Neelam Naik answered.
3 weeks ago


We have been getting intuitively news about the growth of rural demand. Even in the latest GDP numbers, agriculture has done much better than industry and services which is clear indication that agri demand is building up momentum in rural areas.

Now there is official confirmation coming from no less than the CEO of ITC, Mr. Sanjiv Puri. In fact, Puri has confirmed that rural consumption has exceeded the demand from urban quarters in a very meaningful manger in the Jun-20 quarter.

Puri also pointed out that there were some subtle shifts like people opting for larger packs to reduce the number of times they have to venture out of their homes. But the bottom line remains that the demand from rural India was a lot more robust.

Puri has pointed out risks too. He expects that if the economic contraction begins to hit livelihoods and jobs, the impact will be seen as fall in demand and it could be sharp. Ecommerce was now contributing 4.2% to sales in the post-COVID era.

The indications are not coming from ITC alone. Hindustan Unilever had also confirmed better traction from rural India. In the auto sector, Maruti and Hero Moto also confirmed better rural traction for entry level vehicles across the regions. So rural is surely shining.