How Indians are spending

Written by Saikat Neogi | Updated: Mar 26 2014, 01:14am hrs
Indians are spending less on food items and more on durables, services and even on clothes. People in rural areas are spending less on cereals, pulses and vegetables and more on milk & milk products, eggs, fish and meat. In urban areas, people are spending more on beverages and less on vegetables.

The poorest 5% of the countrys population in rural areas had an average monthly per capita expenditure (MPCE) of R521 and in urban areas it was R700. On the other hand, the top 5% of the rural population had an average MPCE of R4,491, which is almost nine times that of the bottom 5%. The top 5% of the urban population had an average MPCE of R10,282, or 15 times that of the bottom 5%.

The average rural MPCE was lowest in Jharkhand at R1,006 and the highest in Kerala at R2,669, which was almost two times the national rural average of R1,430. Even in urban areas, the highest MPCE was in Kerala at R3,408, indicating that the large inflows of remittances is driving consumption expenditure in the state. At R2,581, the urban MPCE in Gujarat was below the national urban average of R2,630.