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Tropical Storm MICHAUNG hits India – DG ECHO Daily Map 05/12/2023

Tropical Storm MICHAUNG has made landfall in India, prompting immediate response actions to safeguard communities and properties in the impacted regions. The storm’s trajectory has been closely monitored to assess the extent of its impact across the affected areas. To better comprehend the situation, people can refer to the DG ECHO Daily Map for a comprehensive overview of the storm’s path and its potential aftermath. This daily map provides critical insights into the areas most affected by the storm, aid distribution efforts, and the overarching response strategy.

The DG ECHO Daily Map offers vital information, such as the location and magnitude of the storm’s impact, enabling authorities to allocate resources effectively for rescue missions and emergency relief operations. It serves as a crucial tool for coordinating efforts by government agencies, non-governmental organizations, and other humanitarian entities in providing assistance to those in need. The map’s detailed analysis and visual representation aid in facilitating swift and well-informed decisions amidst the crisis.

By accessing the daily map, stakeholders gain access to real-time updates and precise data, helping them stay informed about the evolving situation on the ground. Additionally, it assists in identifying high-priority areas requiring immediate attention, thus optimizing the distribution of aid and resources. The DG ECHO Daily Map serves as a fundamental asset in managing and mitigating the impact of the storm, ultimately contributing to the effective response and recovery efforts in the aftermath of disaster.

In light of the tropical storm MICHAUNG’s impact, the DG ECHO Daily Map serves as an invaluable resource for authorities, organizations, and individuals involved in the response and recovery efforts. It facilitates a coordinated and targeted approach to addressing the immediate and long-term consequences of the storm, thereby aiding in the restoration of affected communities and infrastructure.

For those seeking to access the DG ECHO Daily Map, the downloadable PDF is available for review, equipping stakeholders with critical information to guide their interventions and initiatives in the wake of the tropical storm MICHAUNG.

## FAQs

### What is DG ECHO?

DG ECHO, also known as the European Civil Protection and Humanitarian Aid Operations, is a department of the European Commission responsible for coordinating the provision of humanitarian aid within and outside the European Union.

### How can the DG ECHO Daily Map be accessed?

The DG ECHO Daily Map is typically made available online for review and download. Stakeholders, including government agencies, NGOs, and the public, can access the map through the relevant official channels or websites.

### What information does the DG ECHO Daily Map provide?

The DG ECHO Daily Map offers critical insights into the impact and aftermath of disasters, providing details on affected areas, aid distribution efforts, and response strategy. It serves as a vital tool for coordinating humanitarian assistance and emergency response efforts.

In conclusion, the DG ECHO Daily Map is an essential resource for effectively responding to disasters such as tropical storm MICHAUNG. Its comprehensive data and visual representation play a pivotal role in guiding decision-making and resource allocation, ultimately contributing to the efficient management of crisis situations and the subsequent recovery process.

Empowering the Humanitarian System: A Focus on South Asia – Issue No. 208, January 2024

Participating in the Delhi launch of the Strengthening the Humanitarian System in India (SHSI) report in April was a valuable experience for me. The Strengthening the Humanitarian System was developed from discussions between the All India Disaster Mitigation Institute (AIDMI) and the Active Learning Network for Accountability and Performance in Humanitarian Action (ALNAP) during the launch of the 4th edition of ALNAP’s State of the Humanitarian System (SOHS) report in 2018. As an author of the 5th edition of the SOHS which explores global aggregated trends in humanitarian action, I was eager to delve into this new publication created by AIDMI, Sphere India, and WFP. The report focuses on India’s humanitarian structures and policies, providing valuable insights into a country with significant experience in responding to various humanitarian threats.

The current issue of, titled “Strengthening the Humanitarian System: From India to South Asia,” offers insightful reflections on the content of the SHSI report, providing a comprehensive overview of India’s humanitarian structures and policies. It also offers forward-looking options for implementing some of its recommendations. The compilation of perspectives from different types of humanitarian actors, focused both on the national and state level, with contributions from Andhra Pradesh, Odisha, and Tamil Nadu, covers topics of clear importance for India and other countries. These contributions shed light on issues of migration, disaster risk reduction, and preparedness, which are increasingly crucial globally due to the growing threats of climate-related disasters.

I am eager to see how the SHSI report will be utilized in India and in other contexts facing similar humanitarian challenges. The first edition of this India report provides a valuable baseline for ongoing review, and its clear set of recommendations will facilitate future assessments of progress. I am keen to observe the evolution of the SHSI and the practical and policy actions it inspires.

South Asia Requires a “Marshall Plan” to Build Climate Resilience

The World Bank South Asia Climate Roadmap 2021-25 forecasts that as many as 800 million people in South Asia, home to some of the world’s poorest and most vulnerable communities, could experience a significant decline in living conditions due to climate change. This could lead to widespread hunger and displacement, particularly among the elderly, young, and poor populations, as farmers lose crops and coastal areas are submerged by rising sea levels.

South Asia is currently grappling with escalating climate threats, including severe heatwaves, destructive floods, and rising sea levels, all of which pose a substantial risk to the lives and livelihoods of the region’s 1.9 billion inhabitants and its fragile ecosystems. With the 2023 United Nations Climate Change Conference (COP28) looming, it is imperative for South Asia to chart a course toward a resilient climate future.

The primary focus should be on strengthening national climate plans within the framework of the Paris Agreement, particularly by utilizing limited public resources and development financing to attract the trillions of private capital waiting on the sidelines. The World Bank is collaborating with countries in South Asia to establish robust carbon markets, facilitating the implementation of necessary infrastructure, market mechanisms, and regulations to ensure the production of high-quality carbon credits. This will empower countries to attract private capital for sustainable monetization of carbon assets.

The second priority is to expand adaptation and resilience efforts. The rapid melting of glaciers and the formation of glacial lakes in the Himalayas are expected to lead to more catastrophic events, such as the recent flash floods in the Teesta River in Sikkim, India. Such events underscore the need for a cautious, risk-based approach to development in vulnerable ecosystems. Early warning systems, climate-resilient infrastructure, mangrove restoration, and crop insurance can help safeguard lives and property. Cutting-edge technologies like Artificial Intelligence (AI) and Machine Learning (ML), combined with the widespread availability of remote sensing imagery and affordable Internet of Things (IoT) sensors, offer the ability to rapidly analyze large volumes of data, identifying patterns and making predictions that might elude human observation, such as identifying impending floods or droughts. Moreover, remote sensing imagery, such as satellite photos, allows for the monitoring and measurement of changes in landscapes, ice caps, and oceans over time. Inexpensive IoT sensors are capable of gathering real-time data on glacier melts, temperature, moisture levels, and air quality. These technologies can be integrated to generate highly accurate maps and models, improving our capacity to prepare and implement effective measures to mitigate the impacts of climate change.

Five Methods Through Which PPPs Create Impact

The world’s infrastructure needs are vast. Approximately 675 million people lack access to electricity. Around 2 billion people do not have access to safe drinking water, and approximately 2.7 billion people, which accounts for roughly one-third of the global population, are not connected to the Internet.

With the approaching COP28 in Dubai, the World Bank Group’s vision for sustainable infrastructure in a climate-resilient world becomes increasingly urgent. This is also an opportune moment for public-private partnerships (PPPs), which have proven to expedite the development of sustainable infrastructure by enabling close collaboration between governments, the private sector, and multilateral institutions such as the World Bank Group.

I have personally witnessed the impact of PPPs. At IFC, often in collaboration with our counterparts at the World Bank and MIGA, we have assisted governments in successfully implementing projects for public transportation, renewable energy, and healthcare. It is inspiring to see governments enhancing people’s quality of life and creating jobs by leveraging the resources, expertise, and innovations of private enterprises. I see five ways in which PPPs can generate even greater impact for people and our planet.

  1. Do more with less
    Developing countries encounter substantial financing shortfalls that restrict their investment capabilities. By partnering with the private sector through PPPs, governments can achieve more with less.
  2. Share risk to make projects bankable
    Well-structured PPPs facilitate the sharing of risks between the public and private sectors, relieving governments from bearing the entire burden.
  3. Improve public service delivery
    PPPs can assist governments in broadening access to essential services such as water, healthcare, and education.
  4. Boost infrastructure resilience to climate change
    Some governments have effectively integrated innovative climate mitigation measures into their infrastructure PPPs, bringing them closer to achieving their Paris Agreement objectives.
  5. Enhance gender equality and economic inclusion
    PPP projects can advance gender equality and economic inclusion by incorporating standards to ensure that developmental benefits reach women, youth, and underserved or marginalized communities.

Comprehending and Constructing Indigenous Resilience to Climate Change in South Asia

As climate change accelerates, the is increasing its efforts to support to help countries become more climate resilient.

As climate change continues, the World Bank is working on supporting Green, Resilient, and Inclusive Development (GRID) to enhance countries’ ability to deal with climate challenges. This includes a specific focus on Indigenous Peoples who are especially vulnerable to climate impacts and play a crucial role in managing natural resources sustainably. Many of the world’s remaining forests are located in indigenous territories.

Indigenous People possess resilience, based on knowledge and practices passed down and adapted over generations to sustainably manage the landscapes and ecosystems that support their food systems, livelihoods, and cultures. As climate-related disruptions increase globally, there is much to learn from Indigenous Peoples’ knowledge, practices, and adaptations. Recognizing the significance of these practices enables external partners such as the World Bank to better support these communities.

The South Asia region is home to many Indigenous Peoples with diverse cultures residing in remote landscapes and facing climate-related risks and disasters.

In Pakistan, the Kalash people in the Chitral valleys of the Hindu Kush Mountain range rely on natural resources for sustenance and have a deep understanding of sustainable environmental management. Their traditional knowledge and practices prioritize forest and water conservation, the use of local herbs for medicine, and emphasize the spiritual and cultural aspects of the natural world. This specialized knowledge has been handed down for generations.

For instance, local shepherds possess valuable knowledge of glaciers, forests, and mountains within the community. The Kalash people use traditional practices such as the Suri Jagek to predict weather patterns and the likelihood of natural disasters based on celestial observation. This practice also determines suitable times for planting crops and forms the basis for the community’s social calendar including festivals and religious ceremonies.

In Nepal, the indigenous Tsum community has taken a lead in environmental conservation through their traditional institution, Shagya, to safeguard the Valley’s natural environment, biodiversity, and culture.

In India, tribal groups like the Kondh in Odisha have successfully revived vast areas of local forests using traditional patrolling practices.

In September 2023, the World Bank collaborated with the Center for Indigenous Peoples Research and Development to convene a gathering of Indigenous thought leaders and experts from 14 countries around the region, including India, Pakistan, and Nepal, to discuss the drivers and enablers of Indigenous resilience.

Understanding and enhancing Indigenous resilience will necessitate genuine engagement, consultation, and involvement of Indigenous Peoples in climate actions. This will be essential for implementing green, resilient, and inclusive development strategies to prepare for future climate shocks.

The World Bank currently offers direct financing to empower Indigenous Peoples and local communities through the Dedicated Grant Mechanism, the Forest Carbon Partnership Facility (FCPF) IPLC Capacity Building Fund, and most recently through the Enhancing Access to Benefits while Lowering Emissions (EnABLE).

The event was part of a World Bank initiative, Building Back Better- Enhancing Indigenous Peoples’s Resilience to Climate Change, supported by the World Bank Human Rights and Empowerment Trust Fund, the Enhancing Access to Benefits while Lowering Emissions (EnABLE) Trust Fund, and PROGREEN. It aims to develop a framework for understanding Indigenous Peoples’ resilience to shape the Bank’s policy dialogue and operational lending related to Indigenous Peoples.

Topics: Social Sustainability and Inclusion

Countries: India, Nepal, Pakistan

Regions: South Asia

Series: Sustainable Communities

Reflecting on 2023: A Recap of South Asia’s Year in 10 Blogs

2023 has been a year of recovery for South Asia. The region has been hit hard by a series of extreme shocks in recent times: the pandemic, multiple economic crises, ongoing political turmoil and devastating natural disasters.

2023: A Year of Recovery for South Asia

2023 has been a year of recovery for South Asia. The region has been hit hard by a series of extreme shocks in recent times: the pandemic, multiple economic crises, ongoing political turmoil, and devastating natural disasters. And countries have a long way to go to attain their development goals. But these crises have also shown the resilience and innovation of the people in the region, from a young innovator in Nepal who used mobile apps to expand her business during the pandemic to a road maintenance worker in Bangladesh who now earns enough to support her granddaughters’ education to women’s self-help groups in India spreading knowledge on health and nutrition.

Top 10 Blogs of 2023

  1. A united South Asia can beat air pollution

    South Asia is a global hotspot of air pollution, home to 37 of the 40 most polluted cities in the world. Air pollution causes nearly 2 million premature deaths across the region and incurs significant economic costs. Since air pollution travels long distances and gets trapped in large airsheds, it is only through cooperation at the provincial, state, and regional levels that South Asia can curb air pollution. Drawing on a World Bank report, Martin Raiser’s blog stresses the need for unity to end air pollution – a call to action from our campaign Together for Clean Air in South Asia.

  2. Why the Maldives 5 MW solar project is a game changer

    Projected to lose 80 percent of its land over the next few decades, Maldives has strengthened its commitment towards climate change and renewable energy targets and aims to become net-zero by 2030. Guangzhe Chen, Amit Jain, and Simon Stolp write about how the inauguration of a World Bank-supported 5 MW solar project has been a game changer in Maldives’ energy transition journey, which is now seeing unprecedented interest from international investors and helping establish the Maldives as an investment destination for sustainable projects.

  3. Empowering women through a #DigitALL Nepal

    Read about how 17-year-old Nabina Yadav in Nepal kept her vegetable stall business afloat during the pandemic by using messaging and digital payment apps. Nabina’s story illustrates how digital technologies can help even the smallest businesses thrive. This blog by Aayushma K.C. emphasizes that for women to more effectively participate in the fast-digitizing economy, we need to ensure access to technology, skills, and digital financial services.

  4. Pakistan: Economic recovery, inclusive growth require bold reforms

    Pakistan is at a critical decision point, with years of inefficient policies culminating in an economic crisis that has hit ordinary Pakistanis harder than ever before. However, World Bank analysis shows that, with the right policies in place, Pakistan could achieve upper-middle income status by 2047. Tobias Haque writes about the major reforms that are urgently required to navigate the country towards a brighter, more prosperous and more sustainable future.

  5. The road to jobs and dignity: Bangladeshi women are building a new future

    In Erisha Suwal and Jayati Sethi’s blog, meet Bedana Begum, one of the 795 women employed by the local government engineering department as part of the World Bank-financed Western Economic Corridor & Regional Enhancement (WeCARE) Program. The program helps provide efficient, safe, and resilient connectivity along a section of the regional transport corridor and reduce post-harvest losses. It has helped hundreds of women like Bedana not only meet their day-to-day expenses but also accumulate savings and become more self-sufficient.

  6. Rising to the challenge: Promoting livelihoods in Afghanistan by engaging the private sector

    In countries challenged by fragility, conflict, and violence, the private sector is key to accelerating economic growth. Since the Taliban took over Afghanistan in 2021, much of the hard-won progress was threatened. Tahir Akbar and Kabeer Dawani write about how the World Bank is supporting the revival of the local private sector in Afghanistan’s construction sector through the strengthening of community resilience and livelihoods, and the challenges it faces in doing so.

  7. Stranded jobs? The energy transition in South Asia’s labor markets

    In the context of a rapid global energy transition, how will moving away from fossil fuels impact jobs and workers in South Asia? Research from our latest South Asia Development Update shows that the energy transition could leave many workers stranded in lower-wage jobs in declining industries. Margaret Triyana highlights the policies that countries will need to adopt to protect vulnerable workers.

  8. India: Improving the health and nutrition of rural women and children in Bihar

    Almost a third of rural women in Bihar’s Jehanabad district are illiterate, but thanks to the World Bank-supported JEEViKA program, many now talk convincingly about complex dietary concepts that could perhaps be foreign to many in urban India. Deepika Anand, Mohammad Anas, and Raj Ganguly visited the district and report on how the program has visibly transformed the nutritional awareness of millions of women self-help group members across the state and how the women’s newly acquired knowledge is bearing fruit.

  9. Sri Lanka’s crisis offers an opportunity to reset its development model

    In Sri Lanka, the recent economic collapse, political instability and increasing climate-induced disasters have devastated lives and livelihoods especially for the poorest and most vulnerable. But with every crisis comes an opportunity. Martin Raiser writes how this pivotal moment is a chance for Sri Lanka to reset its development model towards green, resilient, and inclusive growth.

  10. From Labs to Local: How Global Innovation is Building Local Resilience in South Asia

    In the state of Uttarakhand in India, there are Himalayan villages that are too high and remote for roads, mobile phones or the internet. A low-cost, solar powered community Wi-Fi radio is now connecting 15 such villages, helping locals share weather information, early warnings, and public service announcements. This immensely scalable, easily deployable solution is one of the winners of the TechEmerge Resilience India Challenge — a World Bank initiative to crowdsource and deploy technology solutions to climate impacts. Atishay Abbhi reflects on how such initiatives can help leverage low-risk, customized, and scalable solutions to rapidly prepare, respond, and adapt to extreme events and disasters that continue to grow more frequent and intense.

Collaborating for Sustainable Urban Development: Fukuoka and Ahmedabad Leading the Way

Ahmedabad, the significant metropolis in the Indian state of Gujarat, is widely recognized for its standing as one of the most habitable Indian cities, attributed to groundbreaking urban infrastructure and a robust economy.

Ranked among India’s most habitable cities, Ahmedabad, nestled in the state of Gujarat, owes its reputation to its innovative urban infrastructure and flourishing economy. A key participant in the government’s Smart Cities Mission, this city with a population exceeding 7.5 million, grapples with meeting its water and sanitation demands amid rapid urbanization, pollution, and the impacts of climate change.

In November 2022, the World Bank sanctioned a $280 million loan towards the Gujarat Resilient Cities Project: Ahmedabad City Resilience Project (G-ACRP), specifically targeted at enhancing access to sustainable wastewater management services for a further 7.3 million residents of Ahmedabad. To achieve this, the project aims to enhance the city’s wastewater management system through four avenues: i) crafting robust infrastructure for wastewater networks and treatment systems via long-term performance-based Design, Build and Operate (DBO) contracts, ii) establishing a GIS-enabled O&M planning and budgeting system, iii) employing digital systems for wastewater quality monitoring and early management of industrial pollution risks, and iv) supporting policy reforms to bolster the financial sustainability of service delivery. Overall, the project is anticipated to offer crucial financial and technical support to Ahmedabad towards adopting professional utility systems for sustainable service delivery while developing integral wastewater infrastructure systems.

In rising to meet this challenge, the Ahmedabad city administration, particularly the municipal commissioner and engineers, sought inspiration and guidance for enhancing wastewater management services amid volatile environmental conditions.

Drawing on global experiences, the World Bank identified Fukuoka City, Japan, as an ideal collaborator.

Fukuoka, with a population of 1.63 million, is renowned for its highly effective solid waste management system (the “Fukuoka Method”), along with successful urban development and regeneration initiatives primarily led by the private sector. It also boasts well-developed municipal infrastructure, particularly in water and sanitation, following a severe drought in 1978. Today, Fukuoka, acclaimed as one of the world’s most habitable cities, serves as a nucleus for cutting-edge industries and is being shaped into an advanced smart city through the Fukuoka Smart EAST initiative.

Owing to these accomplishments, Fukuoka stands as a prime source for knowledge and expertise, spotlighted in knowledge exchange events organized by the World Bank Tokyo Development Learning Center (TDLC), a collaboration between the government of Japan and the World Bank, which disseminates Japanese knowledge and experience in sustainable urban development. Through TDLC’s City Partnership Program, it facilitates the exchange of knowledge between municipal governments and operational support services to enrich project design or aid in the implementation of urban projects like the G-ACRP.

What initially commenced as a knowledge-sharing and operational support request from Ahmedabad across two regions and two cities – Fukuoka, Japan, and Ahmedabad, India, has evolved into a sustained city partnership. As the leading technical proponents of this collaboration, we have witnessed a remarkable synergy among these municipal governments and technical experts, fueling fresh ideas and technical solutions for Ahmedabad’s wastewater management challenges.

By leveraging knowledge from Fukuoka’s highly developed and well-maintained wastewater management systems, our collaboration is fortifying the institutional and financial systems of the Ahmedabad Municipal Corporation (AMC) across five realms: i) asset management, including operations and maintenance; ii) quality monitoring and pollution early warning systems; iii) long-term resilient infrastructure planning; iv) reuse and management of wastewater; and v) enhancing financial sustainability in the water sector.

Our involvement kicked off in January 2022, by bringing the Ahmedabad City Administrator (AMC) and his engineering team to Fukuoka to observe its wastewater systems. The exchanges entailed sharing case studies, technical clinics, and on-site observation tours. The Fukuoka technical team partook in the maiden World Bank implementation support mission for G-ACRP in March 2023. The subsequent visit by a Fukuoka delegation to Ahmedabad has already paved the way for refining Ahmedabad’s wastewater management practices. This mission crystallized the essentials of embedding an operations and maintenance culture in a project, and the implementation of a ledger system for better municipal asset management. The combined efforts of the Task Team and TDLC in connecting Fukuoka and Ahmedabad not only benefited the G-ACRP through technical inputs from Japan but also set in motion a more formalized, enduring partnership between these cities, culminating in their joint participation in the G20’s Urban 20 (U20) Summit in Ahmedabad in July 2023.

Firsthand exposure to Fukuoka’s wastewater facilities broadened AMC’s understanding of resource efficiency, sustainable operations, financial sustainability, and the integrity of technical processes. Government officials from both cities gained insights into the opportunities, experiences, lessons, and challenges encountered by the other city. AMC recognized that Fukuoka built its sophisticated urban wastewater system over an extended period through sheer diligence and is now devising a patient and strategic approach for their city.

This partnership underscores how combining financial support with technical assistance and knowledge exchange can magnify the impact of investment projects.

Welcome Government Plan to Review Significant Raise in PM-Kisan Payment and Developments in Housing and Employment in Budget 2024

Union Budget 2024: As per a few economists surveyed, there are indications that the government might boost the funds dispensed through its key direct benefit transfer scheme – Pradhan Mantri Kisan Samman Nidhi or PM-Kisan – by roughly 50% to ₹9,000 annually from the existing ₹6,000.

It is being anticipated by a number of economists that the government will enhance the funds dispersed through its flagship direct benefit transfer scheme – Pradhan Mantri Kisan Samman Nidhi or PM-Kisan – by approximately 50% to ₹9,000 per year from the prevailing ₹6,000 in the Union Budget 2024.

Impact of Budget 2024 on Jobs, Infrastructure, and Social Security in India


As India gears up for the 2024 interim budget ahead of the Lok Sabha elections, there is hope that the budget will prioritize rural jobs and programs. This could involve initiatives like ‘Make in India,’ expansion of Production-Linked Incentive (PLI) schemes, and targeted agriculture-related subsidies and incentives. While reduced subsidies in the budget may affect rural demand, it is anticipated that the government will allocate these savings towards investments in rural infrastructure and incentives to bolster cash flow.

Interim Budget 2024:

With the impending 2024 interim budget, the emphasis on rural jobs and programs becomes even more crucial, given the large population reliant on agriculture and allied activities. In light of this year’s Lok Sabha elections, there is positivity surrounding initiatives such as ‘Make in India,’ the expansion of Production-Linked Incentive (PLI) schemes, and targeted agriculture-related subsidies and incentives, aiming to cater to the rural populace and create employment opportunities.

“Subsidies, as a share of budgetary outlay, are projected to be around 7 percent during FY 2023-24, compared to 8 percent in FY 2022-23. This reduction is expected to contribute to lowering the fiscal deficit as the government consolidates its expenditure. However, the decrease in subsidies could create pressure on rural demand amidst challenges such as lower agricultural output. It is foreseen that the government will divert these savings from subsidies towards spending that can foster sustainable income growth among rural households, ultimately enhancing the disposable income of the rural economy. One approach could be increased investment in rural infrastructure or the provision of incentives to improve cash flow,” as stated by analysts from Deloitte in the context of Budget expectations.

Interim Budget 2024: Five key areas government could focus on

In the rural job market, persistent challenges include underemployment and limited opportunities for skill development. The seasonal nature of agricultural work exacerbates this issue, leaving many rural workers unemployed for a substantial part of the year.

Another significant issue is the insufficient rural infrastructure. Inadequate access to vital services such as roads, electricity, healthcare, and the widespread digital divide hinder rural communities’ access to modern technology and vital information.

Budget 2024: Govt may go for big hike in PM-Kisan payout and a housing & jobs push

Inadequate social security measures leave rural workers susceptible to economic shocks, prompting the urgent need to address issues like health insurance and pension schemes. The agrarian crisis, characterized by farmer suicides and mounting debts, necessitates immediate intervention and sustainable agricultural practices.

To tackle these persistent challenges, a comprehensive approach that encompasses various aspects of rural development is vital.

Budget 2024: The need for a Budget of, by and for the middle class of the Republic of India

Tailored skill development programs can enhance the employability of rural youth, promoting economic growth and self-sufficiency. Aligning these programs with local needs ensures their relevance in the job market.

Implementing sustainable agricultural practices and supporting farmers through subsidies and fair pricing mechanisms are crucial. Addressing the root causes of agrarian distress is essential for the overall well-being of rural communities.

To support the sector, the government has already made significant strides through its policies, schemes, and initiatives. Besides existing schemes such as PM Matsya Sampada Yojana, the Production Linked Incentive (PLI) scheme, and Krishi UDAN 2.0, the government recently announced the development of a Digital Public infrastructure for agriculture to enable farmer-centric solutions.

“The government needs additional measures to increase digital adoption; strengthen the food processing value chain, post-harvest infrastructure, market linkages, and regulations around land pooling; and ensure ease of doing business and investment support,” as mentioned in the Deloitte report.

“The government may take this opportunity to announce certain exemptions and extend some of the benefits. Although this is an interim budget and the actual implementation can happen only when the finance bill gets passed post the full budget announcement after the new regime takes power, the government may indicate its intentions w.r.t the relief measures in the interim budget,” stated Sujan Hajra from Anand Rathi.

What Lies Ahead for the Retail and Consumer Sector in India in FY2025?

The retail and consumer sector in India experienced marginal growth in FY24. The sales of fast-moving consumer goods (FMCG) saw a 4.5% decrease in Q3, affecting both urban and rural markets. This decline was influenced by factors such as low consumer confidence, erratic monsoons impacting rural income, and increased prices of essential and non-essential items.

The retail and consumer sector holds a central position in India’s consumer economy. With personal consumption expenditure driving almost two-thirds of the gross domestic product (GDP), it is expected that India’s retail and consumer sector, as one of the fastest-growing economies, would continue to thrive. However, the growth in this sector was unexpectedly limited for most of FY24.

Furthermore, despite the festive season, the overall sales of fast-moving consumer goods (FMCG) declined by 4.5% in Q3 compared to the previous year, impacting both urban and rural markets. The nine-month overview for FY24 shows marginal improvement, with an overall FMCG value growth of about 2%, and rural growth at just 0.4% compared to the previous year. Contributing factors to this decline can be categorized as demand- and supply-side drivers.

Demand-side drivers:

  • Depressed consumer sentiment: The Reserve Bank of India’s bi-monthly consumer confidence survey, tracking the current situation index, has stayed in the pessimistic zone below 100.
  • Divergent recovery in formal and informal employment: Urban areas show relatively better recovery post COVID-19 compared to rural markets, with agriculture GDP growing at one-third of its long-term rates.
  • Reduced outlay on rural job-guarantee scheme: A 17% decrease in FY24 has diminished rural buying power and overall consumption.
  • Unpredictable monsoons affecting rural income: The FY24 monsoon ranged from 82–100% of the long-term average, impacting rural income generation.

Supply-side drivers:

  • Increased pricing across essential and discretionary categories: Inflation for these categories outpaced overall consumer price inflation, with FMCG goods remaining at elevated prices.
  • Utilizing Kirana stores for growth: Continued investments in market reach in semi-urban and rural areas have escalated costs of reaching end consumers.
  • Market share gains by regional players: Smaller regional players in categories such as tea, edible oils, biscuits, and laundry have provided better value offerings compared to national or branded players.

According to PwC’s 27th Global CEO Survey, 62% of the surveyed CEOs in India are very or extremely confident that their companies will achieve revenue growth in the next 12 months. With key elements of India’s growth engine strengthening, optimism is warranted as we approach FY25. With a per capita GDP of approximately USD 2,500 per annum, India’s consumption across categories has begun to surge. Branded personal consumption in India makes up about one-third across categories, with low penetration indices and per capita consumption, indicating a substantial growth potential. To fully seize the growth opportunity in the next 12 months, key paradigms should be considered:

  • Optimizing pricing to stimulate volumetric growth in response to underlying commodity price reductions
  • Rural growth’s potential to propel urban FMCG growth, driven by election-related expenditure and optimistic forecasts for the rabi crop