Rural India on the Rise: New NABARD Survey Confirms Strong Economic Momentum:

Rural India on the Rise: New NABARD Survey Confirms Strong Economic Momentum The Ministry of Finance recently issued a press release on December 11, 2025, regarding NABARD's Rural Economic Conditions and Sentiments Survey (RECSS). The Ministry of Finance added that the eighth round of NABARD’s Rural Economic Conditions and Sentiments Survey (RECSS) shows that rural India is doing better than last year. People in villages are earning more, buying more, and feeling more financially secure. This survey is done every two months to quickly check the economic health of rural households, and the latest results suggest a clear and broad recovery in rural demand and well-being.

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Over the past year, the basic economic situation in rural India has clearly improved. People are spending more because their incomes are rising, prices are not increasing as fast, and they are managing their money better. Government support and big investments in rural areas are also helping this positive trend continue. The following are key findings from September 2024 to November 2025. 1. Increase in consumption by real purchasing power About 80% of rural families are spending more than before and now use about 67.3% of their monthly income on buying goods and services, the highest so far, helped by lower GST rates. 2. Income Growth Highest since Survey Inception About 42.2% of rural families experienced income growth, and only 15.7% reported income decline (the lowest record so far). However, 75.9% expect incomes to increase next year. 3. Rural Investment Activity Picks Up Sharply About 29% of rural families increased capital investment (the highest so far), and this increase is happening because their incomes and spending have grown, not because they are under loan pressure.

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4. Rural Credit Access to Formal Sources Reaches Highest Mark About 58% of rural families have access only to formal sources of credit, but around 20% still rely on informal loans, showing the need to expand formal banking further. 5. Government Transfers Continue to Support Demand Without Creating Dependency About 10% of a rural family’s monthly income comes from government benefits like cheap food, electricity, water, gas, fertilisers, schooling help, pensions, and transport support. For some families, these benefits make up over 20% of their income, giving them support and keeping their spending stable. 6. Inflation Perceptions Drop to Their Lowest Level in One Year People now feel that prices are rising much more slowly; inflation is seen at about 3.77%, the lowest since the survey began. About 84% think prices are at or below 5%, and almost 90% expect them to stay that way soon. Because prices aren't rising much, people’s incomes now stretch further, helping them buy more and feel better overall.

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7. Loan Repayment and Capital Investment Conditions Improve With prices rising slowly and interest rates coming down, families are now spending a smaller share of their income on loan repayments. Also, about 29.3% of rural families have undertaken increased capital investment during the last year. 8. Rural Infrastructure and Basic Services Receive Strong Endorsement Rural families show their high satisfaction with improvements in:

• Education
• Roads
• Electricity
• Health services

These changes, along with higher incomes, are helping rural families grow stronger financially and move towards long-term prosperity.