Indian spending shifts: Families move beyond basics as survey shows asset-building rising; urban–rural gaps narrow
As per news agency ANI, the report shows that categories such as Personal Goods and Cooking & Household Appliances are gaining priority over traditional necessities like clothing and footwear — a trend that is now visible even among the bottom 40 per cent of households.The survey stated that “Household spending is shifting from basic necessities like clothing and footwear towards asset-building expenditure on personal goods, and cooking & household appliances.” This change is being driven by rising awareness, greater financial access and improved market connectivity, all of which are contributing to improved productivity and better living standards.Using data from the Household Consumption Expenditure Survey of 2011–12 and 2023–24, the EAC-PM found that motor vehicles have become the fastest-growing durable asset in the country.
The growth reflects a strong urban–rural convergence, with the bottom 40 per cent of households catching up significantly with the broader population, particularly in cities.
Better roads, stronger market links and expanding vehicle-financing options have played a key role in this rise.However, television ownership has grown far more slowly.
In fact, TV ownership has fallen in several urban areas across both the overall population and the bottom 40 per cent.
The report attributes this to near-universal mobile access, which has shifted viewing habits as phones increasingly replace or complement televisions for entertainment and information.Across four key asset groups — motor vehicles, refrigerators, televisions and mobile phones — the report found clear signs of narrowing gaps between consumption segments, especially in urban regions.
Refrigerator ownership is also showing strong convergence, again propelled by urban growth.
Mobile phones now enjoy almost universal adoption across both the top 20 per cent and bottom 40 per cent groups, making them the most evenly distributed durable asset in India.The report further observed that households with no durable assets now make up just 5 per cent or less across all consumption groups and regions, indicating a sharp reduction in asset poverty.
