👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

Indians spending less on food, more on discretionary items -government survey

Published 02/24/2024, 11:44 PM
Updated 02/24/2024, 11:51 PM
© Reuters. FILE PHOTO: Shoppers purchase packets of vegetable oil at a supermarket in Mumbai, India, March 7, 2022. REUTERS/Rajendra Jadhav/File Photo

MUMBAI (Reuters) - Indians are spending less on food, particularly staples like rice and wheat, and more on discretionary items such as processed food, as well as durables like televisions and fridges, government consumption data showed.

The Household Consumption Expenditure Survey, released late on Saturday, estimates average rural consumer spending rose to 3,773 rupees ($45.54) a month per person for the 12 months through July from 1,430 rupees in the previous survey in 2011-2012, while urban spending rose to 6,459 rupees ($77.95) from 2,630 rupees.

Prime Minister Narendra Modi's government did not release a 2017-2018 survey due to what it called "data quality issues". The decision prompted controversy over whether the administration was concealing economic data.

The government denied suggestions it was withholding the data because they showed weak consumption trends.

The new survey will form the basis of a review of India's consumer price inflation index.

Spending on food fell to 46% of monthly consumption for rural consumers from nearly 53% in 2011-12, while in urban areas it fell to 39% from 43%.

Indians are spending less on cereals, including wheat and rice, and pulses, but more on beverages, refreshments and processed food.

Among non-food items, consumers are spending more on conveyance, consumer services and durable goods, like televisions and fridges.

The results come before India goes to the polls in an election to be held by May, with Modi seeking a rare third term.

© Reuters. FILE PHOTO: Shoppers purchase packets of vegetable oil at a supermarket in Mumbai, India, March 7, 2022. REUTERS/Rajendra Jadhav/File Photo

While the Indian economy is forecast to grow at a world-beating 7.3% in the fiscal year that started in April and 7% next fiscal year, large parts of the population living in rural areas face stagnant incomes and high inflation.

($1 = 82.8590 Indian rupees)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.