The earning of an agricultural household for year 2016-17 averaged at Rs 1,07,172 was higher compared to households confined to non-agricultural activities at Rs 87,228.
These are the findings of the All India Financial Inclusion Survey conducted by the National Bank for Agriculture and Rural Development (NABARD). The survey was released by Niti Aayog Vice Chairman Dr Rajiv Kumar.
The pan India survey was conducted, drawing samples from 2016 villages in 295 districts and 29 states. It covered a population of 1,87,518. “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,” the survey states. While defining farm households as families having over Rs 5,000 as value of produce from agricultural operations in the year preceding the survey, the average annual income for all households stood at Rs 96,708. The 48 per cent of the rural families are agricultural households.
The survey mapped other aspects like debt, saving, investment, insurance, pension and financial aptitude and behaviour of individuals apart from annual income.
The survey cites: “Incidence of Indebtedness (IOI), which is a proportion of households having outstanding debt on the date of the survey, was 52.5 per cent and 42.8 per cent for agricultural and non-agricultural households respectively. The all India IOI taking rural households together stood at 47.4 per cent.”
However, 88.1 per cent rural households and 55 per cent agricultural households had a bank account. The average saving per annum per household was Rs 1,7,488.
Another feature highlighted was percentage covered under insurance was 26 per cent of agricultural households and 25 per cent of non-agricultural households. The study registered 52.5 per cent agricultural households with outstanding debt, whereas 42.8 per cent for non-agricultural households.