Signs of growth

According to economics people spend more money on food and non-food items which is a sign of higher economic growth of the country. NITI Aayog CEO Subramaniam revealed that a sample survey by the central government shows that a new consumption culture is being formed in rural and urban India due to a major change in consumption patterns over the last ten years. The survey was launched in August 2023 to estimate the monthly per capita household expenditure in the country. After the survey is concluded in July, the center will set a new CPI with changes. According to the survey results, people living below the poverty line in India have reduced to five percent of the total population of the country.

The survey also points out that the economic gap between those living in rural and urban areas is narrowing. Assessing the data of the survey conducted by the National Sample Survey Office under the Union Ministry of Statistics, the NITI Aayog CEO pointed out that the monthly per capita household expenditure has more than doubled compared to 2011-12. The national per capita household expenditure in urban areas has increased from Rs 2,630 in 2011-12 to Rs 6,459 in 2022-23. In rural areas it has gone from Rs 1430 to Rs 3773 respectively. Purchases of rice, wheat and pulses declined. At the same time, people started spending more on beverages, processed foods and consumer goods.

In rural areas, 53 percent of money spent on food products in 2011-12 decreased to 46 percent last year. The average monthly food consumption in urban areas also decreased from 43 percent to 39 percent. Expenditure on non-food needs rose to 53.6 percent in rural areas and 60.8 percent in urban areas. The survey also shows that people in India have started spending more money to buy other home appliances like television, fridge, AC. This shows that development and growth are taking place in urban and rural areas without much difference.

If this situation continues, the urban-rural gap in terms of monthly per capita household expenditure is likely to disappear after a few years. When people have more money in their hands, they spend money on modern household appliances and other things that help to simplify the stress of life. The survey indicates that this trend is prevailing in India in general. India's GDP may also change when the final results of the survey come out. If the central and state governments proceed with measures to sustain this growth, we can hope that it will not take many years for India to become one of the great economic powers of the world.