Rural Wealth Rise
NEW DELHI
Rural households in India are experiencing a significant boost in consumption and income, according to the latest NABARD Rural Economic Conditions and Sentiments Survey (RECSS) released on Thursday. Around 80 per cent of rural families reported higher consumption over the past year, indicating broad-based economic improvement.
The survey revealed that 67.3 per cent of monthly income is now spent on consumption, the highest share recorded since the survey began, supported by rationalisation of GST rates. This pattern reflects steady demand across the rural economy rather than isolated pockets of spending.
Income growth was reported by 42.2 per cent of households, marking the strongest performance in all survey rounds. Only 15.7 per cent recorded a decline in income, the lowest ever. Looking ahead, 75.9 per cent of households expect their incomes to rise next year, showing exceptional optimism.
Investment in assets also rose, with 29.3 per cent of households increasing capital investment, the highest level in the survey’s history. This growth is driven by rising incomes and consumption rather than credit stress. Formal credit access reached 58.3 per cent, up from 48.7 per cent in September 2024, while informal credit still accounts for about 20 per cent, indicating room for expansion in formal lending.
Government welfare schemes continue to play a stabilising role, with nearly 10 per cent of average monthly income coming from transfers such as subsidised food, electricity, gas, pensions, and transport. For some households, these transfers account for over 20 per cent of total income.
Lower inflation and moderating interest rates have also reduced the share of income spent on loan repayments. Overall, the survey highlights strong rural demand, rising incomes, and renewed investment, painting a positive picture of rural India’s economic recovery.
