- Nearly 80% of rural households reported higher consumption in the past year
- About 67% of monthly income is spent on consumption, highest since survey began
- Loan repayment and capital investment conditions improved with 29.3% increasing investment
Nearly 80% of rural households reported higher consumption over the past year, signaling strong economic momentum, according to NABARD's latest survey.
The 8th round of the Rural Economic Conditions and Sentiments Survey (RECSS) highlights strengthening fundamentals—robust consumption, rising incomes, moderating inflation, and improved financial behavior. Sustained welfare support and public investment are reinforcing this trend.
About 67% of monthly income is now spent on consumption, the highest share since the survey began, aided by GST rate rationalization. Softer inflation has improved real purchasing power of rural non-farm income, boosting demand.
Loan repayment and capital investment conditions have improved, with 29.3% of households increasing capital investment—the highest level across all survey rounds. Rural credit access to formal sources is at its peak.
Average inflation perception moderated to 3.77%, falling below 4% for the first time since the survey started. About 84% perceive inflation at or below 5%, and nearly 90% expect near-term inflation to remain below that level, enhancing real income and overall welfare.
The rural consumption demand buoyancy, thus, appears to have received a boost after the GST rate rationalisation, with improved real purchasing power of rural non-farm income due to softer inflation also contributing to the momentum, as per the November 2025 round of the survey. RECSS is a high-frequency, bi-monthly assessment being conducted by NABARD since September 2024.
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