Key Points

The report is based on a bi-monthly survey conducted by the National Bank for Agriculture and Rural Development (Nabard) in September.

While this represents a rise from the 70.2 per cent of respondents expecting their income to rise a year ago, it slightly declined from 74.7 per cent in July this year.

“It is possible that Trump tariff-related risks for the farm and non-farm exports, and the associated impact on rural income and employment, might have dampened the sentiments of rural households expressed through this survey,” revealed the Nabard survey.

Further, just 18 per cent of households reported a decrease in income over the last year in September. It is the lowest level recorded since the survey began in September 2024. In comparison, nearly 24 per cent of rural households reported a fall in income last year.

However, about 45 per cent of rural households reported stagnation in income -- the highest in all seven surveys conducted over the past year.

In September, consumption among rural households also saw an increase -- more than 76 per cent. In comparison, in September 2024, more than 80 per cent of respondents had reported higher consumption.

“While the consumption-led buoyancy in the rural economy continues, there is some slackening of momentum in recent months, partly reflecting the impact of severe floods and landslides in a few states, including Himachal Pradesh and Punjab,” Nabard said.

A major part of the survey was completed before the announcement of the GST reduction on September 3, 2025. Therefore, household responses do not reflect the expected positive impact of the measure on consumption, the report said.

- IANS