August 8, 2025
About 41.6% of respondents said their economic situation improved in the past two months, while 34.4% reported a decline
Employment conditions remained largely unchanged despite the uptick in overall confidence
The Current Situation Index saw a slight rise, reflecting broad-based improvement across most survey parameters
Nearly 60% of respondents expect their economic condition to improve in the coming year, with higher income and employment opportunities anticipated
Rural households in India are beginning to feel a modest lift in their economic fortunes, according to the Reserve Bank of India’s latest Rural Consumer Confidence Survey. Conducted between 1 and 12 July 2025, the survey gathered 7,924 valid responses from rural and semi-urban households across all Indian states and three major Union Territories.
The data indicate that 41.6% of rural consumers reported an improvement in their economic situation over the past two months, while 24% said it remained unchanged. Around 34.4% felt their situation had worsened, and 7.1% did not respond.
While the economic outlook showed improvement, employment conditions remained static. The Current Situation Index (CSI) edged up slightly, supported by broad-based gains across most parameters measured in the survey.
The survey tracks both current perceptions compared with a year ago and expectations for the year ahead, covering economic situation, employment, income, spending, and inflation.
Looking forward, optimism appears stronger. About 59.6% of rural consumers expect their economic condition to improve over the next year, 21.2% foresee no change, and 19.2% anticipate a decline. Respondents also expect better job opportunities and higher incomes, though many foresee increased spending.
The Future Expectations Index (FEI) has now risen for six consecutive survey rounds, underscoring a steady build-up of rural optimism.
On prices, households’ current inflation perception fell by 50 basis points to 5.8% in July 2025 compared with the previous round. Year-ahead inflation expectations dropped even more sharply, by 100 basis points, to 7.9%. More households now expect a decline in prices and inflation in the coming year.
Overall, the findings reflect a cautiously positive shift in rural India’s economic mood, with recovery signals emerging despite persistent employment challenges.
Source: Economic Times