RBI Surveys: Urban Job Optimism vs Weak Income Sentiment
Why in the news
RBI shared the outcome of its Rural Consumer Confidence Survey for the first time, along with March 2025 urban sentiment readings that show steady jobs but weak incomes and confidence.
About the RCCS
- Held every two months since September 2023; each round aims at 9,000 rural and semi-urban households in all states and three major UTs.
Key facts (March 2025)
| Measure | Result |
|---|---|
| Urban: jobs improved | 35.5% |
| Urban: income improved | 23.8% |
| Urban: economy improved | 34.7% (lowest in over a year) |
| Urban: higher prices / higher spending | over 90% / over 80% |
| Rural: income fell | 29.9% |
| Urban: income fell | 23.3% |
- Income optimism began falling from March 2024, leaving a roughly 12-point gap with job optimism.
- Rural households were consistently gloomier on income; urban spending looks necessity-driven, caused by inflation.
Takeaways for policy
- Focus on wage growth and income quality, targeted rural support and price stabilisation.
Exam angle
- RCCS: bi-monthly, since September 2023, 9,000 households.