Indian Consumer Spending: A recent report is shocking about the changes that Indians have made in their spending habits in the last 10 years. From 2013 to 2023, Indians have spent more on healthcare and education sectors, whereas before this, Indians were more focused on food, clothing and home.
Know the trends according to the data of National Account Statistics 2024
In the last 10 years, the attention of Indian customers has been more towards services than food and clothes. According to the data of National Account Statistics 2024, in the last 10 years, Indian consumers have been increasing their spending towards services instead of food, clothing and housing. The share of essential commodities in private final consumption expenditure (PFCE) has declined between FY 2013 and FY 2023, while the share of others, including healthcare and education, has increased. On the basis of this, it can be assumed that this is an indicator of increasing interest towards service economy.
The share of health and education increased so much in 10 years
In 10 years, expenditure on health has increased at the rate of 8.2 percent and a growth of 7.5 percent has been seen on education. On the basis of this, an overall average growth of 6 percent has been seen in Private Final Consumption Expenditure (PFCE) in the last 10 years.
Decrease in household expenses
The expenditure on household expenses has come down from 16.4 percent to 13 percent and the expenditure on clothes has come down from 6.1 percent to 4.8 percent. A growth of 8.2 percent has been seen in the transport sector and an increase of 7.8 percent has been recorded in communication expenses.
Look at the top 3 expense areas
If we look at the top 3 expenditure areas, 27.8 per cent expenditure has been recorded in catering, 9.3 per cent in transport services, 9.2 per cent in housing rental, 6.8 per cent in personal transport operation and 6.3 per cent in bread and grain expenses.
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