In a New Budget, India Directs More Investment to Rural Regions

Aiming to spark economic development beyond its booming cities, India's new national budget allocates more funds for job guarantees, infrastructure improvements and food subsidies in rural communities. According to an article in India Knowledge at Wharton, critics contend that the additional spending is too modest. Still, Wharton professors and other experts say that encouraging growth in rural India is a welcome trend. The focus on rural India is particularly important, says Jagmohan Singh Raju, a professor of marketing at Wharton, because "growth brings with it the potential for greater income disparity. I believe the focus on rural India and rural jobs is appropriate. They have not been a part of India's growth story. These efforts will also improve productivity and eventually increase the buying power of rural India."