NEW DELHI: Economic Survey focuses on how linking financially less privileged rural women to self help groups, welfare schemes and

direct benefit transfers

(DBTs) has the potential to spur consumption and income-generating activities in low-income households.
The Survey says social sector initiatives have reduced inequality and increased consumption spending, as reflected in the the Household Consumption Expenditure Survey 2023-24 that highlights the narrowing urban-rural gap in consumption expenditure.

The report highlights a survey by Artha Global's Centre for Rapid Insights (CRI) covering 2,400 married women between 25 to 45 years in rural areas of Bihar, Jharkhand, Madhya Pradesh and Uttar Pradesh, who were relatively less financially privileged.
Conducted in November, the survey offers an insight into consumption patterns and choices of rural households benefiting from DBTs and women in the target population obtaining loans from SHGs. Nearly 60% reported improvement in quality of life and 19% said they had more time for economic activity. The prevalence of

cash schemes

was very high, with 77% receiving cash from either Centre or a state, indicating a preference for cash schemes among economically vulnerable households.

Overall, 44% of households spent the money on increased food consumption, 31% on non-food consumption like electricity, water, savings, or loan repayments and 14% on house repair. "The exercise reinforces the case for replacing in-kind subsidies with direct and targeted cash transfers," the Survey report said.