Household spending patterns in India are shifting away from basic necessities towards asset-building categories, the Economic Advisory Council to the Prime Minister (EAC-PM) said in a new report.
The survey found that households are increasingly allocating more of their budgets to personal goods and cooking and household appliances, even among the bottom 40% of income groups. Spending on clothing and footwear has comparatively declined.
“Household spending is shifting from basic necessities like clothing and footwear towards asset-building expenditure on personal goods and cooking and household appliances,” the report said.
The council said the trend, driven by rising awareness, easier access to finance and better market connectivity, has implications for productivity and living standards.
The analysis, based on the Household Consumption Expenditure Survey of 2011–12 and 2023–24, showed that motor vehicles are the fastest-growing durable asset category. Ownership has risen sharply across both urban and rural areas, with the bottom 40% of households showing significant catch-up, especially in cities. Improved roads, expanded market access and wider financing options have supported the rise.
Television ownership, however, has grown more slowly and has fallen in several urban regions for both the overall population and the bottom 40%. The report said near-universal mobile access has shifted consumer preferences, with phones increasingly substituting television for information and entertainment.
Across motor vehicles, refrigerators, televisions and mobile phones, the report observed narrowing ownership gaps, particularly in urban areas. Motor vehicle disparities have reduced nationwide, while refrigerator ownership shows strong urban-led convergence. Mobile phones have reached near-universal penetration across all income groups.
The share of households owning multiple asset categories has risen across both rural and urban areas, indicating shrinking consumption gaps. Households without any durable assets now account for 5% or less across all regions and income groups, signalling a sharp decline in asset poverty.
(IANS)