Will Nearly 73 Percent of Rural Households See Income Growth By Next Year?

Synopsis
Key Takeaways
- 73% of rural households expect income growth.
- Only 18% reported a decrease in income over the last year.
- 45% noted stagnation in income, marking a high rate.
- Consumption has increased to over 76%.
- Environmental factors are influencing rural economic momentum.
New Delhi, Sep 23 (NationPress) Almost 73 percent of rural households are optimistic about an increase in their income over the upcoming year, as indicated by a recent report.
This report stems from a bi-monthly survey carried out by the National Bank for Agriculture and Rural Development (Nabard) in September.
While this marks an increase from the 70.2 percent of respondents projecting income growth a year prior, it reflects a slight dip from the 74.7 percent noted in July of this year.
According to the Nabard survey, “Factors such as Trump tariff-related risks affecting both farm and non-farm exports, along with their repercussions on rural income and employment, may have contributed to a decline in the sentiment expressed by rural households.”
Moreover, only 18 percent of households indicated a decrease in income over the past year, the lowest percentage since the commencement of the survey in September 2024. In contrast, roughly 24 percent of rural households reported a drop in income last year.
However, around 45 percent of rural households noted stagnation in income—marking the highest rate across the seven surveys conducted in the past year.
In September, there was also an uptick in consumption among rural households, exceeding 76 percent. Comparatively, in September 2024, over 80 percent of respondents had reported increased consumption.
Nabard noted, “While the consumption-driven growth in the rural economy persists, recent months have shown some signs of slowing down, partly due to the effects of severe floods and landslides in states like Himachal Pradesh and Punjab.”
A significant portion of the survey was conducted prior to the GST reduction announcement on September 3, 2025, suggesting that household responses may not capture the anticipated positive effects of this policy on consumption, the report concluded.