New Delhi: The latest NABARD Survey, released as the eighth round of the Rural Economic Conditions and Sentiments Survey (RECSS), provides clear evidence of a broad-based revival in rural demand and rising incomes. Conducted bi-monthly since September 2024, the survey now offers a consolidated, year-long dataset that reflects both economic conditions and household expectations across rural India. According to the findings, nearly 80% of rural households consistently reported higher consumption during the past year, supported by rising incomes, moderating inflation and stronger financial behaviour.
Key findings from NABARD Survey highlight rural momentum and improving fundamentals
The RECSS results indicate that 67.3% of monthly income is being spent on consumption—the highest since the survey began—reflecting real purchasing power and a resilient demand pattern. On income trends, 42.2% of households reported gains, the strongest performance across all survey rounds, while only 15.7% noted any decline. Outlook remains highly positive, with 75.9% expecting income growth next year.
Investment activity also strengthened, with 29.3% of households increasing capital spending in farming and non-farm sectors. Access to formal credit reached its highest point, with 58.3% relying solely on formal channels. Meanwhile, informal credit remains at about 20%, indicating continued need for deeper formal penetration. Government welfare transfers supplement around 10% of average income and, for some households, exceed 20%, helping support essential consumption without creating dependency.
Inflation perception declined to 3.77%, its lowest in a year, and nearly 90% of respondents expect inflation to remain below 5%. With improved loan repayment conditions and expanded rural investment, households have reported stronger financial stability. Rural residents also expressed satisfaction with improvements in infrastructure, including roads, education and electricity, followed by drinking water and health services.
