Rural consumption decelerated over 2014-17
India’s rural consumption story was stalled for last three years owing to combination of two back to back draughts in 2014 and 2015 coupled with anemic growth in Minimum Support Prices for crops . This resulted in sub-par growth for rural dependent sectors viz. FMCG, Two-Wheelers, Tractors, Rural oriented NBFCs, Seed companies. Hopes of rural recovery gathered steam in 2016 as country witnessed normal monsoon after two consecutive droughts. However, disruptive event like Demonetization overweighed on broader consumption backdrop with rural India being disproportionately impacted given higher dependence on cash.
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Motilal Oswal was founded in 1987 as a small sub-broking unit, with just two people running the show. Today it has a 2000 member team with a networth of Rs7 bn and market capitalization as of March 31, 2008 at Rs19 bn.
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