Over the past twelve years, Indian households have undergone a remarkable transformation in their spending habits, with a notable shift from food to non-food expenditure, according to a State Bank of India or SBI report. This evolution reflects broader changes in the nation’s socioeconomic landscape, driven by economic growth, policy reforms and lifestyle modifications. Here are all of the important details that you would need to know about this particular report by SBI on Indian spending habits.
Expenditure On Food Falls By Five Per Cent In India: Report
According to an article that was recently published by The Free Press Journal or the FPJ. the most striking change has occurred in rural areas. Here, food expenditure has declined substantially from 52.9 per cent to 47.04 per cent of total spending between 2011-12 and 2023-24.
Urban areas have followed a similar pattern, albeit less dramatically. Food spending in urban areas has decreased from 42.62 per cent to 39.68 per cent. Correspondingly, non-food expenditure has risen significantly, particularly in rural areas.
Now, it accounts for 52.96 per cent of household budgets, up from 47.1 per cent. A detailed examination reveals interesting trends in specific consumption categories. Both rural and urban areas have witnessed a marked decline of more than five per cent in the consumption of cereals and pulses.
Government initiatives promoting hygiene and implementing consumer-friendly tax reforms have played a crucial role in reshaping spending priorities.
Other Insights Revealed About Spending Habits Of Indians
Toiletries, too, have seen increased spending, largely attributed to the success of the Swachh Bharat Abhiyan (Clean India Mission) and heightened hygiene awareness. The implementation of the Goods and Service Tax or GST has also influenced spending patterns.
The rationalisation of tax rates has led to reduced expenditure on taxes and cess. Similarly, spending on clothing and footwear has also decreased. This is likely due to lower GST rates compared to the previous taxation system.
These shifts in consumption patterns align with global trends and reflect India’s evolving consumer preferences. The changes are particularly pronounced in rural areas, suggesting improved living standards and increased disposable income.
This transformation underscores the dynamic nature of India’s consumer behaviour and its progression towards more diverse spending patterns.
Cover Image Credits: Canva Pro Images
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