New Delhi, Aug. 16 -- India's rural economy is showing early signs of a broad-based recovery, bolstered by a strong start to the monsoon season, a rebound in rural wages as inflation eases, and a renewed push in government spending, according to a report by the Ambit asset management firm.

The report added that these positive developments are expected to lift rural demand, improve agricultural productivity, and provide momentum to overall economic growth in the coming quarters.

"As we head into FY26, green shoots are emerging. A strong start to the monsoon season, a resurgence in rural wages (driven by easing inflation), and higher government spending are setting the stage for a broad-based rural recovery," the report added.

The report...