Over 76 pc rural households in India report higher consumption: NABARD

New Delhi, Aug 1 More than 76.6 per cent of rural households have reported a surge in consumption, indicative of a high rural economic momentum, according to a survey by National Bank for Agriculture and Rural Development (NABARD).

The July 2025 survey showed that concerns of inflation in rural areas have eased as more than 78.4 per cent of households believe current inflation to be at or below 5 per cent. This also reflects an improvement in price stability.

The Consumer Price Index (CPI) data on rural inflation also showed a fall -- from 3.25 per cent in March to 2.92 per cent in April. It further declined to 2.59 per cent in May and 1.72 per cent in June.

Further, the survey showed that over 20 per cent of households reported higher savings, signalling an improvement in the financial health of the rural economy. More than half (52.6 per cent) were also found to source loans solely from formal institutions.

The survey also reported growth in jobs and income, with 74.7 per cent expecting income growth over the next year and more than 56.2 per cent anticipating better job prospects in the short term.

Coupled with rising incomes, expanding financial inclusion, and growing household optimism, the findings reflect an encouraging picture of rural India.

A surge in fiscal transfer schemes, in both kind and cash -- both from the Centre and states -- showed strong support for income and spending levels.

"These include subsidies on food, electricity, cooking gas, fertilisers, and support for school needs, transport, meals, pensions, and interest subsidies. On average, these transfers made up about 10 per cent of a household's monthly income," the survey said.

These interventions significantly enhance household resilience and reduce financial pressure, especially for vulnerable populations, it added.

In addition, the July survey also showed that only 2.6 per cent of households reported any decline in perceptions of infrastructure. It reflected growing satisfaction with basic services like roads, electricity, water, education, and healthcare.

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