The report reveals that households are spending a smaller portion of the monthly per capita expenditure (MPCE) on food items
Enabled by greater awareness, financial access and improved markets, household spending is shifting from basic necessities like clothing and footwear towards asset-building expenditure on personal goods, and cooking and household appliances, even in the bottom 40 per cent of households.
A survey report by the Economic Advisory Council to the Prime Minister (EAC-PM) revealed that consumption patterns of households have transformed significantly over the last decade, with households spending a smaller portion of the monthly per capita expenditure (MPCE) on food items.
Comparing the household consumption expenditure survey 2023–24 with 2011–12, the survey highlighted that across the three components – food items, consumables and services and durable goods the share of food has fallen to less to than 50 per cent in both sectors. The share of MPCE spent on durables has risen in both rural and urban areas, with the rural share slightly surpassing that of urban households in many states.
“There is near universal access for mobiles, reflecting the improved inter-connectedness and access to communication for nearly the entire population. Laptop/ personal computer (PC) growth remains slow and concentrated in fewer households, likely due to limited know-how and specialised educational and professional application,” the report explained.
Motor vehicle ownership is the fastest growing among durable assets, with significant urban-rural convergence within the overall as well as the bottom 40 per cent households in many states, as per the report. Television ownership has increased at a slower pace than other durables. The report mentioned that in many urban areas of states, television possession has actually declined for both the overall population and the bottom 40 per cent.
Among household appliances, refrigerator ownership saw tremendous expansion. Both sectors grew significantly but the rise was more broad-based in urban areas, including the bottom 40 per cent. Across the four key assets (motor vehicles, refrigerators, televisions, and mobile handsets), the report showed a clear trend of convergence, particularly stronger in urban areas, where ownership gaps between the groups have narrowed more rapidly over the period.
