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Bulk of household spending goes to durables: Study

NEW DELHI: The consumption pattern of Indian households has changed dramatically over the past decade with the share of monthly per capita expenditure on food falling below 50% for the first time and a larger portion going to non-food items such as durable goods, a new study reveals. According to the study, which compares data from the Household Consumption Expenditure Surveys of 2011-12 and 2023-24, household spending is shifting from basic necessities to asset-building items such as domestic appliances. The findings are part of a working paper released by the Economic Advisory Council to the Prime Minister. The paper says the gap in asset ownership between the bottom 40% (B40) and the top 20% (T20) of households is narrowing. Mobile phones have emerged as the primary medium for information, entertainment and communication, with near-universal ownership across both urban and rural areas and all consumption groups. Among B40 rural households, mobile phone ownership rose from 66.5% in 2011-12 to 94.3% in 2023-24, it noted. Television ownership in rural areas, too, increased from 49.6% recorded in the 2011-12 survey to 61.1% in 2023-24. Interestingly, in urban areas, television ownership declined from 80.4% to 78.5%, a trend the study attributes to mobile phones replacing TV screens. Refrigerator ownership among both rural and urban households tripled. Ownership of air conditioners/air coolers and washing machines also rose across rural and urban areas, including B40 households.