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Key Points

Consumer confidence in India showed modest improvement in September 2025 according to the latest RBI surveys. Both urban and rural households reported better perceptions of the current economic situation compared to previous periods. People are increasingly optimistic about the year ahead, expecting improved earnings and easing inflation pressures. The findings suggest cautious optimism is spreading across both city and village households nationwide.

Key Points: RBI Survey Shows Urban Rural Consumer Confidence Rises September 2025

  • Urban consumer confidence index rose 0.4 points to 96.9 in September 2025
  • Rural areas show Current Situation Index advancing into optimistic zone
  • Future Expectations Index climbs to 125.0 indicating positive outlook
  • Households expect inflation pressures to decline over next year
  • Both surveys covered over 14,000 respondents across India
  • Income expectations show slow but steady improvement trend
2 min read

RBI survey shows urban and rural consumer confidence edges up in September 2025

RBI's latest survey reveals improved consumer confidence in both urban and rural India, with positive outlook for economic conditions and easing inflation expectations.

"Sentiment about earnings has been on a steady path of improvement for the last four survey rounds - RBI Report"

New Delhi, October 2

Consumer confidence among both urban and rural households showed a slight improvement in September 2025, according to the Reserve Bank of India's latest report. The findings are based on two separate surveys: one covering 19 major cities and another covering rural and semi-urban areas nationwide.

The Urban Consumer Confidence Survey (UCCS), conducted from August 28 to September 6, 2025, included 6,068 respondents. The survey found that people in cities are feeling marginally better about the present economic situation compared to earlier.

The Current Situation Index (CSI), which measures how households perceive the economy today compared to a year ago, increased by 0.4 points to 96.9 in September. Meanwhile, expectations for the year ahead remain positive. The Future Expectations Index (FEI) increased by 0.3 points to 125.0, indicating that people continue to expect the coming year to be better.

The RBI report noted that households in urban areas expect price and inflationary pressures to decline over the next year, despite remaining somewhat concerned about the current level of prices. Sentiment about earnings has been on a steady path of improvement for the last four survey rounds, while future income expectations are showing a slow but steady increase.

Parallel to this, the Rural Consumer Confidence Survey (RCCS) was conducted between August 28 and September 7, 2025, yielding 8,848 responses collected from across all Indian states and three Union Territories. The survey shows that confidence in villages and small towns also improved, with the Current Situation Index advancing further into the optimistic zone. The Future Expectations Index in rural areas also continued to climb, highlighting optimism about the year ahead.

The RBI report pointed out that fewer rural households now expect prices and inflation to rise over the next year. At the same time, their current perception of inflation edged up slightly by 10 basis points to 5.9 per cent in September, compared to the previous round. However, looking ahead, households expect inflation to ease, with one-year forward expectations moderating by 30 basis points to 7.6 per cent.

Together, the findings indicate that both urban and rural households are cautiously optimistic about economic conditions, with many anticipating improved prospects in the coming year.

- ANI

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Reader Comments

R
Rohit P
While the numbers look good, I'm not feeling this optimism in my daily life. Groceries, fuel, and education costs are still pinching the middle class. The survey might not capture the full picture of household financial stress.
S
Suresh O
Good to see rural confidence improving! In our village in UP, better monsoon and government schemes have helped. But we need to see if this translates to actual income growth for farmers. The devil is in the implementation.
A
Anjali F
The urban-rural convergence in confidence is the real story here. For balanced economic growth, both need to move together. Hope this reflects in better job opportunities across sectors! 🇮🇳
M
Michael C
As someone who's been tracking Indian economy for years, these incremental improvements matter. The steady rise in future expectations index shows people believe in India's growth story. Small steps lead to big changes!
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Kavya N
The inflation expectations going down is the most positive sign. When people expect prices to stabilize, they're more likely to make big purchases. This could boost auto and housing sectors. Fingers crossed! 🤞

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