Revival of rural economy to take time in the absence of specific triggers

New Delhi, Feb 4 Focus on the rural economy in the budget has been waning over the years and in such a scenario a revival of the rural economy would take time, JM Financial said in a report.

In the absence of a specific focus on the rural economy in the Union Budget for 2023-24, analysts don't see immediate triggers for revival in the rural economy. Moreover in the absence of specific or enhancement of allocation towards the rural economy, we believe that the rural environment would have to revive on its own. Hence we would view businesses dealing with price sensitive low ticket items as less likely to benefit, JM Financial said.

An attempt is made to make the new tax regime more attractive after getting a low response in FY23, however we believe the benefits in the form of tax saving on enhanced no-tax limit