Rural Economic Sentiment Mixed Amid Budget Focus

A recent survey by Nabard found that 71.8% of rural households expect their income to increase in the next financial year, which is the lowest since March 2025.

The percentage of households expecting a decrease in income fell to 3.4%, the lowest recorded.

The percentage of households reporting increased consumption fell to 73%, indicating a possible slowdown in rural consumption demand.

The share of food in monthly consumption expenditure rose to 55.5%, the highest in all rounds of the bi-monthly surveys.

Retail food inflation remained negative for the seventh consecutive month in December 2025, at -2.71% year-on-year.

Meanwhile, the Prime Minister’s Office has urged the Finance Ministry to propose measures to accelerate agricultural growth in the upcoming Budget.

The government is likely to focus on fostering farmer collectives, improving post-harvest infrastructure, and supporting agro-processing units to boost incomes and rural employment.

The Budget proposals will align with the broader rural revitalization agenda, ensuring sustainable agricultural growth alongside value-driven economic diversification.

The rabi sowing season shows promising prospects with increased acreage in various crops, supported by favorable monsoon rains and government measures such as timely announcement of Minimum Support Prices and adequate fertilizer supplies.