Government subsidies make up a big chunk of rural income in India
A new NABARD survey shows that government subsidies now make up about 10% of what rural families earn, with some households depending on them for over 20% of their income.
Thanks to good monsoons and lower inflation in 2025, 42.2% of rural households saw their income grow—the highest since the survey began.
Rural incomes are rising, but spending stays high
By 2025, around 42% of rural households saw their monthly income go up—the best growth since the survey began—while only about 16% saw a drop.
Still, families spend nearly two-thirds of what they earn just on daily needs, with food taking the biggest bite.
Credit habits and ongoing challenges
More rural families are turning to formal loans (up to 58%), but nearly one in five still rely on informal borrowing.
Plus, over a third don't own land and depend on manual work to get by—showing that financial inclusion is still a big hurdle for many communities.