India’s rural economy showed strong recovery in late 2025 as GST rate rationalisation and easing inflation lifted purchasing power. A NABARD survey shows higher consumption, rising incomes, and faster FMCG demand growth in rural markets compared to urban areas.

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• 79.2% rural households increased consumption in Nov 2025, highest in FY26: NABARD
• Share of income spent on consumption rose to 67.3%, highest ever in survey
• GST rate cuts effective Sept 22 boosted TVs, autos, ACs, refrigerators, soaps, biscuits
• Rural inflation eased to 3.77%, below 4% for first time since survey began
• Food inflation negative for 5 months, easing cost pressures
• Rural FMCG volume growth at 7.7% vs 3.7% in urban areas: NIQ
• Small-value packs (₹5–₹20) drove growth in biscuits, snacks, daily-use items
• Rural markets contribute ~38% of packaged goods sales nationally
• 42.2% households reported higher income, strongest survey reading
• Companies like Parle, Nestlé, HUL doubling down on rural-focused strategies