NABARD survey finds rural India faces worst income slowdown

India Jul 22, 2026

Rural India is facing its toughest income slowdown yet, according to a new NABARD survey.

Only 27.7% of rural households saw their incomes go up this year, the lowest since the survey began in September 2024, while more than half said their earnings stayed flat and nearly 20% actually lost income.

Rising prices and weak monsoon rains are making things even harder, with sowing of kharif crops down by 6%.

Rural informal loans hit record high

With incomes stuck, more rural families are borrowing from friends, relatives, or moneylenders instead of banks.

Formal borrowing dropped to just more than half of households, while informal loans hit a record high at nearly one in four homes.

Economists say this shows how tough it is for many to access bank credit or find non-farming jobs.