NABARD has published the findings from its second All India Rural Financial Inclusion Survey (NAFIS) for 2021-22.
- It offers primary data based on a survey of 1 lakh rural households, covering various economic and financial indicators in the post-COVID period.
- The NAFIS 2021-22 results could help to shed light on how rural economic and financial development indicators have evolved since 2016-17.
- The survey included all 28 states and the Union Territories of Jammu & Kashmir and Ladakh.
Key findings
- The average monthly income of households saw a substantial rise of 57.6% over a five-year period, increasing from Rs. 8,059 in 2016-17 to Rs. 12,698 in 2021-22.
- When considering all households together, the 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 households.
- Salaried employment in the government 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, making up about one-third of their monthly earnings.
- The average monthly expenditure of rural households rose significantly from Rs. 6,646 in 2016-17 to Rs. 11,262 in 2021-22.
- Financial savings: The annual average financial savings of households increased to Rs. 13,209 in 2021-22 from Rs. 9,104 in 2016-17.
- Insurance cover: The percentage of households with at least one member covered by any form of insurance increased significantly from 25.5% in 2016-17 to 80.3% in 2021-22. This means that four out of every five households had at least one insured member.
- Pension coverage: The percentage of households with at least one member receiving any form of pension (such as old age, family, retirement, or disability) increased from 18.9% in 2016-17 to 23.5% in 2021-22.
- Financial literacy: The percentage of respondents demonstrating good financial literacy increased by 17 percentage points, rising from 33.9% in 2016-17 to 51.3% in 2021-22
