NEW DELHI: The average monthly income of rural households witnessed an increase of nearly 58% over a five-year period, rising from Rs 8,059 in 2016-17 to Rs 12,698 in 2021-22, according to a survey released on Thursday.
The second All India Rural Financial Inclusion Survey for 2021-22 conducted by National Bank for Agriculture and Rural Development (NABARD) showed that for households average monthly income stood at Rs 12,698, with agricultural households earning slightly more at Rs 13,661, compared to Rs 11,438 for non-agricultural ones.
Salaried employment in govt or private sector was the largest income source for all households, accounting for approximately 37% of their total income.
For agricultural households, cultivation was the main income source, about one-third of their monthly earnings, followed by govt or private services, accounting for one-fourth share, wage labour (16%), and other enterprises (15%), as per the survey conducted in 28 states and UTs of J&K and Ladakh.
Among the non-agricultural ones, govt or private services contributed 57% of the total household income, followed by wage labour which made up for about 26% of the total income, according to the survey results.
The average monthly expenditure of rural households rose significantly from Rs 6,646 in 2016-17 to Rs 11,262 in ’21-’22. Agricultural households reported a higher consumption expenditure of Rs 11,710 than Rs 10,675 for non-agricultural households. In Goa and J&K, monthly household expenditure exceeded Rs 17,000. “Overall, agricultural households demonstrated both higher income and expenditure levels than non-agricultural households,” the survey showed.
The annual average financial savings of households increased to Rs 13,209 in 2021-22 from Rs 9,104 in 2016-17, and overall, 66% of households reported saving money in 2021-22, compared to 50.6% in 2016-17.