Rural demand sees revival as incomes rise: Nabard survey
“The past 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.
Sustained welfare support and strong public investment are reinforcing this momentum,” according to the survey.The survey also showed that rural economic activity had picked up sharply.
About 29.3% of households increased capital investment over the past year, more than any previous round, showing renewed asset creation in farming and non-farm sectors.
“The pick-up in investment is driven by strong consumption and income gains, not credit stress,” according to the survey.The survey showed 58.3 % of rural households have accessed only formal sources of credit, highest so far among all rounds of the survey, up from 48.7% in Sept 2024.
“However, share of informal credit is about 20%, underscoring the need for continued push for deeper formal credit penetration,” said the survey.
