Average income per capita crosses $2000 in 112 rural districts, shopping will increase

Strong signs of economic progress are evident in rural India. According to a report by HDFC Securities, the average income per capita in 112 rural districts has now surpassed $2,000. These areas are home to 291 million people. Income growth is expected to boost demand for non-essential products and services such as smartphones, vehicles, and branded goods.

According to the report, states like Maharashtra, Kerala, Tamil Nadu, and Andhra Pradesh are leading this story of rural upliftment because of their strong economies and development plans. Rural per capita income exceeds $2,000 in almost every state except Uttar Pradesh and Madhya Pradesh. The rural industrial sector was valued at Rs 29 lakh crore in 2024-25, growing at a rate of 7.1 percent over three years. The manufacturing sector grew more slowly at 5 percent. Construction (8.7 percent), utilities (6.9 percent), and mining (13.5 percent) performed well. UP led the industrial sector with a growth of 10.6 percent, followed by Tamil Nadu and Rajasthan.

The average per capita income in the rural service sector now exceeds $3,000 in most states. Agriculture, contributing Rs 61 lakh crore to the rural economy, grew at a slower pace than other sectors, with a growth rate of 3.9 percent between 2021-22 and 2024-25. Crops grew just 2.8 percent, while aquaculture led with a 7.4 percent growth.

Income from the industry sector has crossed $2,000 per capita in most states. The services sector has become the fastest-growing part of the rural economy, valued at Rs 62 lakh crore in 2024-25. Trade, hotels, financial services, and real estate all experienced strong growth. Tamil Nadu and Maharashtra topped the list with 10 percent growth in rural services.