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NABARD Rural Sentiment Survey Sept 2025: Income Optimism Slips

23 September 20251 min read
AGRICULTURE & RURALNABARD RuralSentiment SurveySept 2025: IncomeOptimism Slips23 September 2025safalsetu.com

Why in the news

NABARD’s seventh bi-monthly rural sentiment survey in September 2025 found falling confidence, linked mainly to steep US tariffs.

IndicatorJuly 2025September 2025
Expect higher income in a yearNearly 75%72.8%
Expect better income next quarter56.4%51.6%

Key facts

  • A 50% US tariff touches about 55% of India’s US shipments; seafood exports were hit directly.
  • 54.5% borrow only from formal sources; 20% only informal, mostly friends and relatives.
  • Informal loan rates: average 17-18%, median 12%; a third pay over 20%, about 30% pay nothing.
  • Households with higher income saw earnings up 12.8%.
  • Perceived inflation averaged 4.09%, down ~150 bps since November 2024; median 3%.

Development priorities

  • Roads led at 45.3% of households, then education (12%) and electricity (8.7%).

Test yourself

1. What share of rural households borrowed exclusively from formal sources in NABARD's September 2025 survey?

54.5% borrow only from formal sources, a record high.

2. In the September 2025 NABARD survey, which rural development area topped satisfaction rankings?

Road infrastructure led at 45.3% of households.

3. What was the average perceived inflation among rural households in the survey?

Average perceived inflation was 4.09%, about 150 bps lower since Nov 2024.