India spends less on food, more on clothes, entertainment: What govt data tells about country's household spending

livemint.com:

Bloomberg. As per the report, the share of food in monthly consumption in rural areas declined to 46.4 percent in the latest survey, from 53 percent in 2011-12. The non-food consumption increased to 53.6 percent from 47 percent, the survey showed as reported by Bloomberg.

Speaking of urban areas, the Food’s share declined to 39.2 percent from 42.6 percent earlier, while the non-food share rose to 60.8 percent from 57.4 percent. The report further stated that average monthly per capita consumer spending in urban areas increased to an estimated ₹6,459 rupees ($78) in the survey conducted between August 2022-July 2023, from ₹2,630 in 2011-12, according to the report. As per the report, in rural India during the same period, it climbed to an estimated ₹3,773 from ₹1,430.

“The latest consumer expenditure survey gives insight on spending patterns of Indian households and is key to gauge demand in the economy. The data will also be used by the government to readjust items considered for calculating retail inflation and gross domestic product data", the report said. Meanwhile, Last year, Boston Consulting Group (BCG) along with industry body CII said in a report said that prices of packaged household staples, care products as well as packaged foods and beverages have more than doubled since 2012.

College fees saw the maximum price increase followed by kitchen staples, household care products and food and beverages. The report said that the price increase has led to pressure on volumes of fast-moving consumer goods, or FMCG, as the quantum of price hikes remains firm. Indian households spent ₹5.4 trillion in 2023 on fast moving consumer goods such as biscuits, soaps, shampoos, toothpaste, jams and floor cleaners, etc.