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Rural demand witnesses revival over past year in NABARD survey
Dec-12-2025

The eighth round of National Bank for Agriculture and Rural Development’s (NABARD) Rural Economic Conditions and Sentiments Survey (RECSS) has showed a broad-based revival in rural demand, rising incomes and improved household well-being over the past year. It said with robust consumption, rising incomes, moderating inflation and healthier financial behaviour, rural India is on a positive trajectory. It said sustained welfare support and strong public investment are reinforcing this momentum. RECSS is a high-frequency, bi-monthly assessment being conducted by NABARD since September 2024. 

According to survey, about 80% of rural households have consistently reported higher consumption over the last year - a hallmark of rising prosperity. It said about 67% of monthly income is now spent on consumption, the highest share since the survey began, aided by GST rate rationalisation. 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. 

It further stated that loan repayment and capital investment conditions have improved and that 29.3% of rural households have undertaken increased capital investment during the last year, which is the highest level among all rounds of the survey. It said the pick-up in investment is driven by strong consumption and income gains, not credit stress, and added that rural credit access to formal sources reaches its highest mark. It said average inflation perception moderated to 3.77%, falling below 4% for the first time since survey initiation. About 84% perceive inflation at or below 5%, and nearly 90% expect near-term inflation to remain below 5%, enhancing real income, improved purchasing power, and boosted overall welfare. 


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