Impact of digitisation, connectivity on rural economy yet to be measured, says FM Sitharaman

Finance Minister Nirmala Sitharaman said that the impacts of digitisation and connectivity on the rural economy are not coming through in current economic indicators. In an exclusive interview with Managing Director of Network18 Rahul Joshi, the FM said “Indicators with which we are looking at the rural economy may vary, newer indicators may tell us a different story. FMCG data is one indicator. But better connectivity, digitisation (in rural areas) are yet to be measured,” said the Finance Minister a day after she presented the interim Budget. She also said that college recruitments, and hiring in top institutions like IIMs are important, but jobs created in middle and lower order are not being counted when talking about employment in the economy. “I am not sure I will be able to describe what is happening in the rural economy. Let us recognise there is a lot of shift in employment, let us recognise migration is now looking at redefining itself,” she further said. Sitharaman speaking to CNN-News18 on international rating agencies said, “I would think they do their job, but periodically it’s our business also to bring it to their notice that the economy, particularly emerging market economy like India despite the odds we are doing a lot of systemic reforms which are bearing the results now.” Sitharaman on Thursday presented her sixth consecutive budget. In less than an hour-long budget speech, she presented the Modi government’s achievements in the last 10 years that transformed India from being a ‘fragile’ economy to the world’s fastest-growing major economy.