Rural economy on growth track, shows optimism & stability: NABARD survey

Rural India is experiencing economic optimism, the latest report from the July 2025 round finds, with 76.6 per cent of the households reporting increased consumption and almost 40 per cent witnessing a rise in income over the last year, according to NABARD's Rural Economic Conditions and Sentiments Survey (RECSS), which indicates a consistent rise in household prosperity and financial confidence in the villages of India.

- SIMONTINI BHATTACHARJEE

NEW DELHI:

Biannually conducted, the RECSS has become an important index for measuring the success of rural development schemes and government programmes. The sixth round of the survey indicates a continued momentum of income-and consumption-driven growth underpinned by infrastructure development, policy support, and strong financial inclusion initiatives.

The survey report has shown that this year, 39.6 per cent of rural families have reported a rise in income, the highest since the survey began. The income has increased by 5-10 per cent for most families, and 9.1 per cent of them have reported an income increase of more than 20 per cent. The increase in income has translated into higher consumption as more than three-fourths of rural families have spent more in the last year. But 3.2 per cent even testified to reduced consumption.

NABARD's figures also indicate a significant change in the way households are spending their incomes. Spending on monthly consumption now represents 65.57 per cent of income, higher than the September 2024 figure of 60.87 per cent. At the same time, the proportion of income spent on savings has increased to 13.18 per cent, while loan repayment accounts for 11.85 per cent of spending, reflecting both increased disposable incomes and improved financial discipline.