NABARD Survey: Jairam Ramesh Says Rural Borrowing Rise Exposes Govt Claims

Congress general secretary Jairam Ramesh said on Friday, 6 November, that NABARD’s latest rural survey contradicts the Centre’s claim of rising prosperity, pointing to higher household borrowing, lower savings and informal loans costing 18.3% a year. NABARD’s Rural Economic Conditions and Sentiments Survey, covering 6,000 households in 600 villages, was published the same day.

Ramesh, a Rajya Sabha member, said the findings showed “no relief on earnings, no check on inflation, no affordable healthcare”. He accused the government of refusing to acknowledge conditions in rural households.

Food Takes More Than Half of Spending

According to the survey’s 13th round, food accounted for 53.5% of monthly rural household consumption spending. Education and health took 24.1%, and cooking fuel and transport 16.6%. Consumption absorbed about 65% of monthly income.

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Ramesh also listed rising prices of vegetables, fruit, pulses, cooking oil, milk and flour. He warned that prices of soap, biscuits and noodles could go up after Diwali, and cited a report by Aon that projects medical costs rising 10.1% next year against general inflation of about 4%.

Borrowing Up, Savings Down Since July

The survey found 32.4% of households reported higher borrowing, up from 28.7% in July. Another 32.1% said their financial savings had fallen, against 28.6% in July. Informal loans carried an average annual interest rate of 18.3%, up from 17.8%.

Only 27.1% of households reported higher income over the past year, the lowest share in the survey’s 13 rounds, and households saved 12.6% of monthly income, the lowest since the survey began in September 2024. The field visits were done in late August and early September.

Poll Message for Five States

Ramesh urged voters in Punjab, Uttarakhand, Uttar Pradesh, Goa and Manipur, which go to Assembly elections next, to vote against the BJP over inflation. The Tribune’s report of his statement carried no response from the government or the BJP. Earlier Congress statements on the SIR and voter lists are in our report on Ramesh’s SIR remarks, and more coverage is under the Congress tag.

Source: Based on reporting by The Tribune and The Wire.

Image: PTI / The Wire.