NABARD Bi-Monthly Survey Shows Strong Revival in Demand in Rural Areas

New Delhi, Dec 11 (KNN) A bi-monthly survey by National Bank for Agriculture and Rural Development (NABARD) has shown broad-based revival in rural demand, rising incomes and unprecedented optimism.

As per the survey findings released on Thursday, as many 80% of rural households consistently reported a higher consumption over the last year.

The latest edition of the survey (November 2025) was conducted after the GST rate rationalisation announced on 3 September 2025.

NABARD conducts its Rural Economic Conditions and Sentiments Survey every two months across India, capturing both quantitative indicators and household perceptions relating to income, consumption, inflation, credit, investment and expectations.

The survey showed 67.3% of monthly household income was devoted to consumption expenditure, the highest level among all rounds of the survey conducted since September 2024. More than 42% of rural households reported income growth.

A release issued by the Finance Ministry on NABARD survey results said that the last one year has seen a clear strengthening of rural economic fundamentals.

"With robust consumption, rising incomes, moderating inflation and healthier financial behaviour, rural India is on a positive trajectory," it said, adding that sustained welfare support and strong public investment are reinforcing this momentum.

The survey indicated exceptionally strong future outlook with 75.9% participants expecting incomes to rise next year - the highest level of optimism since September 2024.

As per the survey, rural investment activity has picked up sharply, with 29.3% of households increasing capital investment over the past year.

Nearly 58.3 % of rural households who participated in the survey said they have accessed only formal sources of credit indicating a growing banking network in the hinterland.

Even those who borrow from informal sources mostly rely on their family and friends.

The survey noted that while the average interest rate on informal credit has been sticky at around 17-18%, more than one fourth of the households that borrow from informal sources pay no interest as they get the money from friends and relatives.

Average inflation perception moderated to 3.77%, falling below 4% for the first time since survey initiation, according to the survey.

(KNN Bureau)