Higher borrowings through informal or unrecognized sources in rural areas of India have impacted the ability to spend. Many are now repaying the debt taken during the pandemic leading to a possible spending slowdown, says C K Ranganathan, Chairman and Managing Director, CavinKare Pvt Ltd. He also quoted that with some improvement in March numbers over February, there is a hope that these numbers will sustain on the back of improved monsoons, and the return of migrant laborers to cities, thereby improving rural remittances.
