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NABARD Survey Signals Broad Rural Demand Revival as Inflation Eases

Lower perceived inflation alongside GST rate rationalisation is credited with lifting real purchasing power.

Overview

  • About 80% of rural households reported higher consumption over the past year, with roughly 67% of monthly income now going to spending.
  • Income momentum improved as 42.2% saw gains versus 15.7% reporting declines, and 75.9% expect incomes to rise over the next year.
  • Household investment strengthened, with 29.3% increasing capital outlays across farming and non-farm activities.
  • Perceived inflation fell to 3.77%, with about 84% saying price rises feel below 5% and most expecting it to stay subdued in the near term.
  • Access to only formal credit rose to 58.3% of households as transfers supplemented around 10% of income, though financial savings and near-term expectations weakened.