Hyderabad: A recent study highlights how Indian households are changing what they buy. Over the last decade, people are spending less on food and more on items like appliances and vehicles. This shift is explored in the report titled ‘Changes in Durable Goods Ownership in India: Analysis of the Household Consumption Expenditure Survey 2011-12 and 2023-24,’ conducted by the Economic Advisory Council to the Prime Minister (EAC-PM).
The study compared the Household Consumption Expenditure data from 2023-24 with that from 2011-12. It shows that families are more focused on long-lasting goods, signaling a change in their lifestyles and aspirations. The report suggests that these trends reflect an overall improvement in the quality of life.
Spending Habits
The findings reveal that consumers are now prioritizing personal items, cooking essentials, and household goods over clothing and footwear. This change is evident even among the poorest 40% of households. “Spending has shifted from basic needs to more substantial purchases,” the report explains.
In both urban and rural areas, households are spending a larger share of their monthly income on durable goods. Interestingly, the portion of money spent on food has decreased significantly, going from 52.9% in 2011-12 to 47% in 2023-24. The report mentions that as income rises, spending on non-food items typically increases, showing a shift in consumer preferences.
Motor Vehicles and Appliances
One key observation is the rapid rise in motor vehicle ownership. Rural households owning vehicles shot up from 19% to 59%. Urban areas also saw an increase, with ownership rising from 40.1% to 68.2%. States like Punjab and Telangana are leading the way in vehicle ownership, while areas like West Bengal have lower rates.
Ownership of refrigerators is also climbing, especially in urban areas. Access to credit and better infrastructure can contribute to these growing numbers. Rural households are catching up, narrowing the ownership gap significantly.
According to new data from the Indian government, mobile phone ownership is booming, even as television ownership declines. This shift indicates that smartphones are becoming essential tools for communication and entertainment, marking a significant change in how people access information.
The Broader Impact
This transformation in consumption habits has broader implications. It suggests improvements in living standards and a transition to a more connected society. Experts emphasize the need for better public transportation options, especially as vehicle ownership rises. Many cities are facing challenges related to congestion and pollution due to the increase in private cars.
In conclusion, these changes in spending behavior reflect deeper societal shifts in India. Improved access to goods and services is changing not only what people buy but also how they live and connect with each other. The report underscores the importance of these trends in shaping future economic policies.
For more information, you can explore government reports like this.
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