Indians spend less on cereals, more onproteins, durables and entertainment

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Thakur

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The average urban Indian keeps 12 per cent
of her monthly non-food budget for
education, 10 per cent for medicines and 11
per cent for transport.
Her rural sister spends a little less on
education and transport but spends much
more, 14 per cent for medical needs, the
latest data on consumption pattern of
households brought out by the government
shows.
Gold is a big attraction for both of them,
with almost a quarter of their spending on
durables going to it and both have moved
away from saris. Just 16 per cent of their
budget for clothes is spent on saris with
shirts, trousers and readymade garments far
more popular across the country.
For both of them, proteins, fruits and
vegetables account for 48 per cent of their
monthly food budget, which explains why
prices of these items have become so sticky.
The data shows that in ten years since FY05,
Indians in rural and urban areas have sharply
cut back on their expenditure on cereals.
Despite the UPA government’s enthusiasm for
providing rice and wheat to people, monthly
budget for these products within food was
only 20 per cent in rural areas and even less
15 per cent in urban areas.
These are a part of the 68th round survey by
the National Sample Survey Organisation
(NSSO) on Household Consumption of Various
Goods and Services. The data will be ploughed
by the government for policy planning and
for construction of indices such as the
consumer price inflation index while private
sector companies, especially in the FMCG
sector, will exploit the data to fine tune their
marketing strategies.
Per head consumption of rice in rural India
now is only 11.23 kg and 9.32 kg in urban
India. So, even though they are buying most
of their rice and wheat from the public
distribution system, it has not helped their
income to grow.
Significantly, urban Indians also prefer to eat
out more. Across all income classes, they eat
out at least once every week. For both urban
and rural sisters, milk is a major item in their
diet. Milk and milk products command a
share of 7 and 8 per cent of total consumer
expenditure, respectively.
The findings are based on a survey in FY12 of
1,01,651 households in 7,469 villages and
5,268 urban blocks spread over the entire
country.
It shows entertainment has become dominant
with a 270 per cent rise in the number of
homes spending on cable TV subscription and
per person expenditure on such subscriptions
rising 5.9 times in rural India between FY05
and FY12.
Naturally this has been propelled by a rise in
availability of electricity. Nearly all urban
homes (96 per cent) now have electricity
while two thirds of rural households (74 per
cent) also consume electricity. The data for
rural India was 67 per cent in FY10.
 
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