India's Evolving Consumption: From Groceries to Goods

A State Bank of India report reveals that Indian households have notably shifted their spending from food to non-food items over the past 12 years. This trend, reflecting both rural and urban areas, is driven by economic growth, changing lifestyles, and government policies, impacting cereals, hygiene, and clothing consumption.

In a significant shift observed over the last 12 years, Indian households have redefined their spending priorities, moving away from food-related expenses to non-food items, according to a comprehensive analysis by the State Bank of India (SBI). The report unveils key trends indicating a marked decline in the consumption of cereals and pulses by more than 5 percent in both rural and urban sectors.

The analysis highlights a transformative change in consumer behavior, observing that spending on food in rural areas has dropped from 52.9 percent in 2011-12 to 47.04 percent in 2023-24, marking a decline of 5.86 percentage points. Similarly, urban food expenditure decreased from 42.62 percent to 39.68 percent, a reduction of 2.94 percentage points.

This consumption shift is attributed to rising incomes, improved living standards, and strategic government policies. Increased awareness and initiatives, like the Swachh Bharat Abhiyan, have elevated spending on toiletries, while rationalized GST rates have boosted non-food expenditure, reflecting India's evolving socio-economic landscape.

(With inputs from agencies.)