70% of Rural India is now online, but discretionary spending is slowing down – Brand Wagon News

Rural India is undergoing a significant transformation—becoming more digitally connected than ever, even as economic pressures dampen consumer spending. According to the Rural Barometer Report 2025, released by GroupM in collaboration with Kantar, discretionary spending on durables and vehicles has slowed sharply, while digital engagement has surged by 28% since 2022, with 7 in 10 rural consumers now active online.

The report outlines a complex landscape. While inflation and economic uncertainty continue to weigh on household sentiment, rural India is not retreating—it’s recalibrating. Three out of four rural consumers expressed concern about their financial stability, prompting a more cautious approach to spending. Notably, younger and more affluent rural groups are leading the cutback on non-essential purchases, while older and less affluent consumers are maintaining relatively steady consumption levels.

Despite this economic caution, confidence is beginning to creep back. The report notes a recovery in job security sentiment after a temporary dip, suggesting the possibility of longer-term economic stabilisation. Government welfare schemes remain a critical support system. The PM Garib Kalyan Yojana, in particular, continues to be widely accessed, with free ration distribution emerging as the most utilised benefit across segments.

At the same time, digital adoption in rural India has reached unprecedented levels. 70% of rural consumers now engage with online platforms, a 28% rise over the past three years. Social media, video streaming, and instant messaging apps dominate daily usage, particularly among Gen Z and higher NCCS groups. Meanwhile, OTT platforms, digital wallets, and e-commerce are gaining serious traction in rural and Tier 2 areas, reshaping what used to be considered strictly urban behaviours.

Traditional media still plays a significant role, particularly among older demographics. However, the balance is shifting as digital becomes the new norm for both information and entertainment. This duality demands a shift in marketing and engagement strategies.

Beyond consumption, financial behaviour is also evolving. With household expenses continuing to rise since 2022, price sensitivity has become a key factor in purchase decisions across product categories. There’s also growing reliance on credit—borrowing patterns show an uptick in personal loan demand, reflecting shifting financial priorities and the need for liquidity.

Ajay Mehta, Managing Director – OOH Solutions at GroupM India, remarked that the report serves as a strategic compass for businesses navigating this dynamic rural landscape. “Media habits are evolving, and with 70% of rural India online, a dual-channel approach—combining the scale of traditional with the precision of digital—is now essential,” he said.

“Rural India is becoming more connected, conscious, and demanding. The new consumer expects relevance and value. Brands need to go beyond a one-size-fits-all model and embrace hyper-local, digitally driven strategies—while still respecting the trust built by traditional media,” Puneet Avasthi, Director – Specialist Businesses at Kantar, said.

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