Income SqueezeBeyond wages, the broader income story in rural India remains discouraging. According to NABARD’s March 2025 rural tracker, just 34.8% of households reported an increase in income, down from 36% in January. Meanwhile, those reporting a decline ticked up to 23.3%. Consumption patterns are incongruent with this income strain—nearly 80% of households report increased spending, a figure that hasn’t budged, underscoring the inflation-stickiness in essentials.The RBI’s consumer sentiment survey adds a further layer of complexity. While overall sentiment in rural areas improved modestly, with 6.9% of respondents seeing better economic prospects and 4.7% reporting improved employment, the income narrative remains grim. A net -4.8% reported worsening income, and nearly half the households have seen stagnant earnings since September 2023.
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