NABARD survey: Income of rural areas increased by 57 percent in five years! On the other hand, the loan burden also increased

The income of families living in villages is continuously increasing. This has been revealed in a recent survey by the National Bank for Agriculture and Rural Development (NABARD) that the average monthly income of families living in villages has increased by 57.6 percent in the last five years. Earns Rs 12698 per month. NABARD's second 'All India Rural Financial Inclusion Survey (NAFIS) 2021-22 has found that the income of villagers is only increasing. Their average monthly income in the year 2016-17 was Rs. was 8,059. It has increased to Rs 12,698 in the year 2021-22. That means the income has increased by 57.6 percent in five years. However, the revenue is estimated to have increased in 23-24 as well.

NABARD said the average monthly income of households increased by 57.6 per cent in 2016-17 to Rs. 8,059 in 2021-22 to Rs. 12,698 has been done. Which represents a compound annual growth rate (CAGR) of 9.5. Savings have also increased during this period. In the year 2021-22, the average saving of a household was Rs 13209 per annum compared to Rs 9104 five years ago. In 2021-22, 66 percent of households registered savings as against 50.6 percent in 2016-17. The survey also mentions that household expenses have also increased in addition to the increase in income. The average monthly expenditure in 2016-17 was Rs. 6,646 in 2021-22 to Rs. 11,262 has happened. Importantly, the share of food items in total consumption has declined from 51 per cent to 47 per cent, reflecting a shift in spending patterns towards other needs. Their average monthly income in the year 2016-17 was Rs. was 8,059. It has increased to Rs 12,698 in the year 2021-22.

Debt burden is also increasing However, the proportion of households with outstanding loans is also increasing. It has increased from 47.4 percent to 52 percent in five years. The survey found a significant increase in insurance coverage among rural households in India. It found that the proportion of households with at least one member insured increased from 25.5 per cent in 2016-17 to 80.3 per cent in 2021-22. This reflects the increased demand for financial services and the reach of industries in rural areas post-Covid.

Expenditure also recorded rapid growth The survey also mentions that household expenses have also increased in addition to the increase in income. The average monthly expenditure in 2016-17 was Rs. 6,646 in 2021-22 to Rs. 11,262 has happened. Importantly, the share of food items in total consumption has declined from 51 per cent to 47 per cent, reflecting a shift in spending patterns towards other needs.