🍛 Indian households' food expenses have decreased significantly

• Indian households' food expenses have fallen to less than half of total expenditures for the first time since 1947.
• The proportion of households' total expenses going to food has decreased considerably across the country.
• The reduction in food expenses reflects an improved economic situation, not reduced consumption.

Historic change in food expenditures

A new report shows that Indian households' average expenses for food have decreased to less than half of the total monthly expenditures. This is the first time since India's independence in 1947 that such a change has been observed.

The report, which analyzes data from 2022-23 and compares it with 2011-12, shows significant changes in India's food expenditure patterns. The proportion of households' total expenses going to food has decreased considerably both in rural and urban areas across all states and union territories.

Reduced food expenses despite increased consumption

It is important to note that the decrease in food expenses does not mean that Indians are consuming less food. On the contrary, this change reflects an improvement in households' economic situation and more efficient food supply.

This change in expenditure patterns indicates an improved standard of living for many Indians, where basic needs such as food can be met with a smaller proportion of income.

The report shows that within the food category, the share of expenses for cereals has decreased significantly both in rural and urban areas. This decrease was particularly noticeable for the 20 percent of households with the lowest income.

Increased total expenditures

While the share of food expenses is decreasing, the study shows a significant increase in households' average monthly expenditures per capita across India. This means that Indians now have more resources to spend on areas other than food.

Generally, the growth in total expenditures was higher for rural households compared to urban households. Rural households saw an increase of 164 percent, while urban households experienced an increase of 146 percent.

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