NITI Aayog reveals Indian households prioritise clothing over food

The significance of consumer expenditure surveys in assessing the country’s poverty levels and the effectiveness of poverty alleviation measures

In a recent revelation, a survey conducted by the National Sample Survey Office (NSSO) has shed light on changing consumer spending patterns among Indian households. According to the findings, citizens in Tier 2 and Tier 3 cities are allocating more of their budgets towards clothing, entertainment, and other non-essential items while cutting back on food expenses.

Speaking on the survey’s results, B.V.R. Subrahmanyam, CEO of NITI Aayog, highlighted the significance of consumer expenditure surveys in assessing the country’s poverty levels and the effectiveness of poverty alleviation measures.

The report indicates a significant increase in household expenditure over the past decade, with urban areas witnessing a doubling of average monthly per capita expenditure (MPCE) from Rs 2,630 in 2011-12 to an estimated Rs 6,459 in 2022-23. Similarly, rural areas have seen a rise from Rs 1,430 to Rs 3,773 during the same period.

Interestingly, the data reveals that Indian families are now spending a smaller percentage of their budgets on food items, opting to allocate more funds towards clothing, electronics, and entertainment. This trend is especially pronounced in Tier 2 and 3 cities, where households are prioritizing non-essential expenses over necessities.

The survey, which collected data from 261,746 households across rural and urban areas, also highlights disparities in spending habits between different regions and income groups. For instance, while urban households spend an average of Rs 2,530 per person per month on food, rural households allocate only Rs 1,750 to the same category.