NAFIS was launched in 2016-17 as a national level survey that offers comprehensive overview of rural population in terms of their status of livelihoods and level of financial inclusion (including loans, insurance, pension etc.).
- Second NAFIS provides key insight into economic and financial indicators of rural development since 2016-17.
Key highlights of survey
- Average monthly income of households increased by 57.6%.
- Share of food in consumption basket of households declined from 51% to 47%.
- Kisan Credit Card as a prominent instrument of financial inclusion in rural farm sector has been found to be very effective.
- Average size of landholding declined to 0.74 hectare from 1.08 hectare.
- Proportion of respondents indicating good financial literacy increased from 33.9% to 51.3%.
- Proportion of agricultural households that took loans from institutional sources increased from 60.5% to 75.5%.
Reasons for rise in rural income
- Government Support: Example, under Mahatma Gandhi National Rural Employment Guarantee Scheme, 5.6 crore households availed employment (January 2023), thus increasing their incomes and provides livelihood security.
- Rise in Rural Female Labour Force Participation Rate: From 19.7% in 2018-19 to 27.7% in 2020-21 (Economic Survey 2022-23).
About NABARD (National Bank for Agriculture and Rural Development)
NAFINDEX: Measure of Financial Inclusion
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