Average Income Of Agricultural households 23% Higher Than Non Farm Families Says Nabard

NABARD All India Financial Inclusion Survey (NAFIS), conducted by National Bank for Agriculture and Rural Development (NABARD), revealed that farm households register higher income than the families solely dependent on non-farm livelihood activities in rural areas. The survey, with reference year of 2015-16, which covered 40,327 rural households, highlighted that the average annual income of an agricultural household is Rs 1,07,172 compared to Rs 87,228 for families engaged only in non-agricultural activities - up 23%. The survey defined farm households as families having over Rs 5,000 as value of produce from agricultural operations in the year preceding the survey. For all rural households, the average annual income stood at Rs 96,708. The 48% of the rural families are agricultural households.
Apart from assessing the income levels of rural households, the survey mapped aspects like debt, saving, investment, insurance, pension and financial aptitude and behaviour of individuals. Incidence of Indebtedness (IOI), which is a proportion of households having outstanding debt on the date of the survey, was 52.5% and 42.8% for agricultural and non-agricultural households respectively. All India IOI taking rural households together stood at 47.4%.
While 88.1% rural households and 55% agricultural households reported having a bank account, average savings per annum per household was Rs 17,488. About 26% of agricultural households and 25% of non-agricultural households were found to have been covered under insurance. Similarly, 20.1% agricultural households as against 18.9% non-agricultural households have subscribed to pension schemes.
Notably, the survey was conducted on a pan-India basis drawing samples from as many as 2016 villages in 245 districts and 29 states. A population of 1,87,518 was covered in the process. The data was collected through the paperless method of Computer Aided Personal Interview. The survey was commissioned in 2016.

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