RBI’s September Survey Taps Rural Pulse: Consumer Confidence Under Fresh Review Across 31 States

The Reserve Bank of India has officially launched the September 2025 round of its Rural Consumer Confidence Survey, a key initiative aimed at capturing the economic sentiment of households across India’s vast rural and semi-urban landscape. Conducted quarterly, the survey provides critical inputs for monetary policy decisions by assessing how rural families perceive and expect changes in income, employment, prices, and overall economic conditions.

 

Key Highlights From The September 2025 Round

- The survey covers all 31 states and union territories, including major rural belts in Uttar Pradesh, Bihar, Maharashtra, Tamil Nadu, and West Bengal  

- Households are asked to compare their current economic situation with that of a year ago and share expectations for the year ahead  

- Topics include employment prospects, inflation perception, household income, and spending behavior  

- Responses will be collected both through field visits and online participation via the RBI’s official portal  

 

Survey Scope And Methodology

- The Rural Consumer Confidence Survey targets over 9,000 households across rural and semi-urban regions  

- A Mumbai-based agency has been engaged to conduct the fieldwork, ensuring standardized data collection and regional representation  

- Participants are selected randomly and approached directly, although voluntary participation is also encouraged through digital channels  

- The survey uses both qualitative and quantitative questions to gauge sentiment and expectations over two time horizons: current and one-year ahead  

 

Why The Survey Matters

- Rural India contributes over 50 percent of the country’s GDP and drives demand for fast-moving consumer goods, durables, and agricultural inputs  

- Understanding rural sentiment helps the RBI fine-tune interest rate decisions, liquidity management, and inflation targeting  

- The survey acts as a barometer for economic resilience, especially in the face of monsoon variability, commodity price shifts, and employment cycles  

- It also complements urban consumer confidence surveys, offering a holistic view of nationwide economic sentiment  

 

Trends From Previous Rounds

- The March 2025 round showed a 6.7 point improvement in the Current Situation Index, driven by better employment and income perceptions  

- Inflation expectations moderated by 30 basis points, with households reporting improved purchasing power  

- The Future Expectations Index continued to reflect optimism, with over 60 percent of respondents anticipating better economic conditions in the coming year  

- Spending behavior remained resilient, with a rise in discretionary purchases and durable goods consumption  

 

Policy Implications And Forward Outlook

- The September 2025 round will feed into the RBI’s upcoming Monetary Policy Committee deliberations, shaping decisions on repo rates and liquidity measures  

- Insights from the survey will also inform fiscal coordination, especially in rural development schemes and agricultural support programs  

- With inflation showing signs of moderation and rural incomes stabilizing, policymakers are expected to maintain a balanced stance  

- The RBI has emphasized the importance of public participation and transparency in shaping inclusive economic policies  

 

Conclusion

The launch of the September 2025 Rural Consumer Confidence Survey marks another step in the Reserve Bank of India’s commitment to data-driven policymaking. By capturing the voices of rural households across 31 states and union territories, the central bank aims to build a nuanced understanding of economic sentiment and expectations. As responses begin to flow in, the findings will play a pivotal role in shaping India’s monetary and developmental roadmap for the months ahead.

 

Sources: NewsBytes, MSN India, Reserve Bank of India.