A recent survey by the National Bank for Agriculture and Rural Development (NABARD) has revealed that average monthly income of rural household grew by 57.6 per cent in 5 years.

Key Points 

• The second ‘All India Rural Financial Inclusion Survey (NAFIS) 2021-22 found that the average monthly income grew by 57.6%, from Rs 8,059 in 2016-17 to Rs 12,698 in 2021-22.
• Financial savings also saw a rise, with the average household saving Rs 13,209 annually in 2021-22, compared to Rs 9,104 five years earlier.
• A significant 66 per cent of households reported saving in 2021-22, up from 50.6 per cent in 2016-17.
• However, the proportion of households with outstanding debt increased from 47.4 per cent to 52 per cent.
• Insurance coverage among rural households saw a remarkable increase, with the proportion of households having at least one member insured surging from 25.5% in 2016-17 to 80.3% in 2021-22. 
• The household expenditures also grew, with average monthly spending increasing from Rs 6,646 in 2016-17 to Rs 11,262 in 2021-22. 
• The survey noted a rise in reliance on institutional loans, with 75.5% of agricultural households borrowing from institutional sources in 2021-22, up from 60.5% in 2016-17. Conversely, non-institutional borrowing among agricultural households decreased from 30.3% to 23.4%.
• The survey also highlighted the effectiveness of the Kisan Credit Card (KCC) in expanding financial inclusion among rural farmers. Pension coverage improved, rising from 18.9% to 23.5% of households. 
• The average size of landholdings decreased from 1.08 hectares to 0.74 hectares over the five-year period.