Rural Spending Growth Outpaces Urban Areas As Indian Consumption Patterns Evolve

Rural consumption spending rose 164% between 2011-12 and 2022-23, faster than the 146% rise in urban spending over the same period.

The share of expenditure on food fell from 52.9% to 46% in rural areas and 42.6% to 39% in urban areas between 2011-12 and 2022-23.

Monthly spending of the top 5% rural population was 7.65 times higher than the bottom 5% in 2022-23; in urban areas it was over 10 times higher.

Share of spending on conveyance, consumer services, and durables rose while share of cereals, pulses and vegetables fell between 2011-12 and 2022-23.

After adding imputed value of free food grains, average monthly spending was only Rs 87 higher in rural and Rs 62 higher in urban areas in 2022-23.