NEW DELHI, Dec. 13 -- India's rural economy expanded and recovered strongly in late 2025, with consumption, incomes and investment improving after a key tax reform and as inflation eased, a survey showed.

So far this year, 79.2% of the rural households increased consumption expenditure - the highest so far in FY26 - compared with 76.2% in the previous round, according to the November 2025 round of NABARD's Rural Economic Conditions and Sentiments Survey (RECSS). Additionally, 67.3% of monthly income is now spent on consumption, the highest share since the survey began, aided by GST rate rationalization.

The survey was conducted after the rationalization of the goods and services tax was announced by the GST Council on 3 September during...