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GST Cuts, Low Inflation Boost Rural Spending, Capital Investment Up Sharply To 29%: NABARD Survey
GST Cuts, Low Inflation Boost Rural Spending, Capital Investment Up Sharply To 29%: NABARD Survey
GST rate cuts and lower inflation boosted the rural income, with 79.2 per cent of households reporting increased consumption, according to the NABARD Rural Economic Conditions & Sentiments Survey – Round 8 (Nov 2025).
67.83 per cent of the monthly income now goes to consumption, the highest since the survey began.
Income levels also improved. 42.2% of households reported an increase in income, while only 15.7% saw a decline, marking the best performance so far. Capital investment surged too, with 29.3% of families increasing asset creation, signalling healthier financial confidence.
However, financial savings weakened, and short-term expectations turned soft. Less than half of the households expect income or employment to improve in the next three months.
Despite the near-term worry, long-term confidence remains strong. More than 75% of rural families expect income to rise over the next one year, the highest level recorded.
Inflation perceptions continued to ease sharply. Households reported current inflation at a mean of 3.77%, the lowest so far, with 84% saying price rise feels below 5%. A large majority also expect inflation to remain subdued in the coming months.
Rural infrastructure satisfaction stayed high, with roads ranked as the best-performing service area.
“Just 15.7 per cent reported an income decline of any type the lowest recorded so far. Future outlook is exceptionally strong as 75.9 per cent expect incomes to rise next year the highest level of optimism since September 2024," the findings showed.
Source: News18
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