After a decade’s run, rural sales may not sizzle anymore

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Many of them now earn more than a third of their revenues from the hinterland, some like Hindustan Unilever, close to half. Reuters Many of them now earn more than a third of their revenues from the hinterland, some like Hindustan Unilever, close to half. Reuters
SummaryRobust rural demand has helped hold up consumption spends over the last decade, as any FMCG firm would tell you.

demand are probably over and that real rural wages should normalise, mirroring the improvement in productivity. The big concern, it says, is that if investments in roads and power taper off, productivity too would follow suit, driving down growth in real wages.

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