Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Economy

India household spending on non-food items rises as urban-rural gap narrows

admin by admin
December 28, 2024
in Economy
0
India household spending on non-food items rises as urban-rural gap narrows
0
SHARES
8
VIEWS
Share on FacebookShare on Twitter

By Manoj Kumar

NEW DELHI (Reuters) – Indian household spending on non-food items such as transport, garments and entertainment rose in both rural and urban areas in 2023/24 while outlays on staples like wheat and rice dropped, a government report showed on Friday.

The Household Consumption Expenditure Survey for 2023/24, conducted from August 2023 to July 2024, showed non-food items accounted for about 53% of per capita spending in rural areas, up from about 47% in 2011/12, and 60% in urban areas, up from about 57%.

The shift in spending patterns is expected to lead to a decrease in the weighting of food items in the consumer price index (CPI), which is used by the central bank to frame monetary policy.

Officials from the Ministry of Statistics and Programme Implementation have previously indicated plans to revise the base year for the retail inflation data from 2012 to 2024, incorporating these findings.

Analysts said food is likely to have a smaller weighting in India’s consumer price index in the near future.

The urban-rural monthly per capita consumer spending gap narrowed to 70% in 2023/24 from 84% in 2011/12, the report noted.

In nominal terms, rural consumer spending climbed 9.55% year on year to 4,122 rupees ($48.23) per month in the year through July from 3,773 rupees the previous year, while urban spending rose 8.31% to 6,996 rupees from 6,459 rupees, the report showed.

Adjusted for inflation, rural spending grew just 3.5%, while urban spending remained subdued due to retail inflation of about 5.5% in the fiscal year that ended in March.

Compared with 2011/12, rural consumer spending rose 45.4%, outpacing the 38.1% increase in urban areas, reflecting a slight convergence in consumption patterns.

Consumer spending, which accounts for about 58% of India’s economic activity, remains a critical driver of economic growth in Asia’s third-largest economy.

($1 = 85.4710 Indian rupees)

This post appeared first on investing.com

Previous Post

Canadian lawmaker to start work on defeating Trudeau government in early January

Next Post

Morgan Stanley boosts consumer finance outlook for 2025

admin

admin

Next Post
Morgan Stanley boosts consumer finance outlook for 2025

Morgan Stanley boosts consumer finance outlook for 2025

Trending News

With Bitcoin breaching the $100,000 mark, what else could be in store for crypto under Trump?

With Bitcoin breaching the $100,000 mark, what else could be in store for crypto under Trump?

December 7, 2024
What Scott Bessent’s Treasury nomination could mean for the economy, tariffs

What Scott Bessent’s Treasury nomination could mean for the economy, tariffs

November 26, 2024
Brazilian consumer confidence dips in October, revealing mixed signals

Brazilian consumer confidence dips in October, revealing mixed signals

October 25, 2024
Subscribe to Insightful Word


    Recent News

    BBVA reassesses Sabadell Bid after Spanish government imposes integration freeze

    BBVA reassesses Sabadell Bid after Spanish government imposes integration freeze

    June 25, 2025
    Long US30: price Sustains above 43K, targets 44K on risk rally and fed clarity

    Long US30: price Sustains above 43K, targets 44K on risk rally and fed clarity

    June 25, 2025
    NATO leaders agrees on increasing defence spending to 5%

    NATO leaders agrees on increasing defence spending to 5%

    June 25, 2025
    BMBL stock rockets 26% after job cuts and raised Q2 revenue forecast

    BMBL stock rockets 26% after job cuts and raised Q2 revenue forecast

    June 25, 2025

    Recent News

    BBVA reassesses Sabadell Bid after Spanish government imposes integration freeze

    BBVA reassesses Sabadell Bid after Spanish government imposes integration freeze

    June 25, 2025
    Long US30: price Sustains above 43K, targets 44K on risk rally and fed clarity

    Long US30: price Sustains above 43K, targets 44K on risk rally and fed clarity

    June 25, 2025

    Latest News

    • BBVA reassesses Sabadell Bid after Spanish government imposes integration freeze
    • Long US30: price Sustains above 43K, targets 44K on risk rally and fed clarity
    • NATO leaders agrees on increasing defence spending to 5%

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.