Personal loans rise, discretionary spending drops in rural areas: Report

GroupM, WPP’s media investment group, in collaboration with Kantar, the marketing data and analytics company, today unveiled the Rural Barometer Report 2025, depicting the evolving mindset of rural India. The report highlights how India’s rural consumers are recalibrating their choices amidst economic strain, while embracing digital platforms at an unprecedented pace.

Despite persistent inflationary pressures, rural India demonstrates remarkable resilience. A rising sense of price sensitivity is shaping consumption, even as digital adoption cuts across age, geography, and income levels. From tightened household budgets to increased trust in digital media, the report reveals a rural consumer who is cautious yet connected. and increasingly future-ready.

Financial concerns continue to loom large, with 3 in 4 rural Indians expressing anxiety over their financial stability. While younger and more affluent segments are curbing discretionary spends, older and economically weaker groups show comparatively steadier patterns. At the same time, optimism is beginning to return. Confidence in job security has bounced back after a temporary dip, pointing to potential for a longer-term recovery. 

Key Financial and Consumption Shifts

  • Household expenses have continued to climb since 2022, driving a more cautious spending outlook
  • Price sensitivity is now a key influencer in purchase decisions across product categories
  • Discretionary spends, notably on durables and vehicles, are on the decline
  • Borrowing patterns indicate rising demand for personal loans, reflecting shifting financial priorities

Rural India’s digital leap is unmistakable. 7 in 10 rural consumers now engage with online media, a 28% rise since 2022. Social media, video content, and instant messaging platforms are fast becoming the norm, particularly among younger, affluent users.

While traditional formats like TV and print still command trust and scale, especially among older demographics, the balance is steadily tipping toward digital. OTT platforms, digital wallets, and e-commerce are no longer an urban phenomenon. Digital adoption in rural India is accelerating, with new leaders emerging across categories, from digital payments to OTT platforms.

Media and Tech Adoption Trends

  • Social media and messaging apps dominate daily engagement
  • Digital platforms resonate most with Gen Z and higher NCCS groups; traditional media still holds sway with older audiences
  • OTT is gaining traction, with increased viewership in Tier 2 and rural belts
  • E-commerce and digital payments are at the forefront of rural India’s digital ecosystem

Ajay Mehta, Managing Director - OOH Solutions, GroupM India, said, “The Rural Barometer Report is a strategic compass for brands navigating this dynamic landscape. As media habits evolve and digital adoption deepens even in the heartlands, it’s clear that a dual-channel strategy, cblending the scale of traditional with the precision of digital, is essential. At GroupM, we see this as an opportunity for marketers to go beyond surface-level reach and build meaningful, hyper-local engagement. This report not only helps decode rural mindsets but also empowers businesses to craft smarter, more inclusive growth strategies for Bharat’s next chapter."

Puneet Avasthi, Director- Specialist Businesses, Insights Division, Kantar added, “As rural India becomes more connected and conscious, brands must rethink how they engage with this audience. The new rural consumer demands relevance, value, and authenticity. Marketers must move beyond a one-size-fits-all approach to adopt hyper-local, digitally powered strategies, while still leveraging the trust and familiarity of traditional media.”

 

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