Rural consumer's economic situation improved, optimistic for future: RBI survey
According to the survey, 41.6 per cent of rural consumers responded positively, stating that their economic condition has improved in the past two months, while 24 per cent of consumers noted that the conditions remain unchanged.
And 34.4 per cent of consumers said that their situation has worsened.
However, it is worth noting that, while the economic situation shows improvement, employment conditions have remained the same, as per the data.
The Current Situation Index (CSI) has edged up slightly after broad-based improvements in most parameters covered in the survey, PTI reported
Improved Consumer Situation Index
Stating the reasons behind this improvement, the RBI in the report said that, "rural consumer confidence for the current period has improved; the Current Situation Index (CSI) inched up marginally owing to broad-based improvement across major survey parameters".
RBI releases the findings of the July 2025 round of its bi-monthly survey on Wednesday. Aimed at collecting views from rural and semi-urban households in India, it tries to capture the current perceptions and future predictions of key indicators. These key indicators range from economic situation, income, spending, and inflation.
Also read: RBI holds repo rate at 5.5% amid Trump tariff pressures; Home loan demand may rise during festive season
Future expectations and economic conditions
In terms of the future expectations and future economic condition, approximately 59.6 per cent of responses were related to improving conditions in the coming year. Meanwhile, 21.2 per cent of respondents highlighted that it will remain the same, and only 19.2 per cent feel it may worsen.
Consumers also shared that they expect employment opportunities and income levels to rise in the next year. However, many rural households also anticipated an increase in their spending going forward.
Consumers expect inflation to decline in future
The survey also noted that the household's current inflation perception has declined by 50 basis points to 5.8 per cent in July 2025. In this round, a higher percentage of rural households expected prices and inflation to decline in the future."
Overall, the survey highlighted a growing sense of recovery and hope among India's rural consumers, despite challenges in employment and rising spending expectations.
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