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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
The role of rural development in economic growth
India is poised to become one of the top three global economies by 2047, with an expected GDP of $35 trillion, up from $3.2 trillion today. A critical part of this transformation lies in rural development. Rural India, which houses around 64% of the population, now accounts for 46% of India’s GDP and half of its overall consumption. This makes rural areas a crucial growth engine for the nation’s economy.
Agriculture remains a cornerstone of the rural economy, contributing 16% to GDP and employing 41.5% of India’s workforce. Despite challenges like the COVID-19 pandemic, agriculture has grown steadily at 3.4% annually. However, India’s focus is gradually shifting towards manufacturing and services to elevate the rural economy further. Government initiatives with higher allocation for rural development over the past decade are enhancing infrastructure and quality of life in these areas. Following factors have contributed further in creating opportunities in Rural India.
Government initiatives driving rural development
Programs like the Pradhan Mantri Awas Yojana Gramin have built 2.1 crore houses, while the Saubhagya scheme has electrified 2.9 crore rural households. The Jal Jeevan Mission aims to provide 11 crore tap water connections and 7.2 lakh km of roads have been constructed, greatly enhancing connectivity. The National Education Policy, with the establishment of 14,500 PM-SHRI schools, is also set to revolutionize education in rural India.
The digital revolution in rural India
Digitization is another key enabler of rural growth. The number of wireless subscribers in rural India has grown by 1.4 times in the past decade, improving connectivity and enabling digital access. This has spurred market information dissemination, increased online payments and boosted sales of local products. Digital advancements are connecting rural areas, fostering social collaboration and opening new economic opportunities.
Structural shifts and changing consumption trends
A significant shift is taking place in the rural workforce, moving away from agriculture towards non-farm sectors like manufacturing, construction and trade. Rural per capita income has now surpassed $2000, spurring increased discretionary spending. The share of food expenditure has fallen from 60% to 46%, reflecting rising spending on non-essential goods. Additionally, the growing participation of women in the workforce is further boosting household incomes and supporting consumption-driven growth.
Conclusion: A promising investment opportunity
Rural India’s economy is showing signs of recovery, with key indicators turning positive since August last year. The government’s focus on manufacturing, infrastructure improvement, and socio-economic initiatives paints a promising future for rural development. Investors can tap into this long-term structural growth story through Mutual Fund Schemes which are focused on rural India. As rural areas continue to thrive, investment in Rural-focused Mutual Funds offers a compelling opportunity to capitalise on the transformation of India’s rural economy.
Note: This article in a partnered post authored by Mutual Fund Distributor Raja Rajamanickam.