As per the Household Consumption Expenditure Survey 2012-23, there are 3 key takeaways:
Real consumption growth moderated to 8.8% CAGR in 2012-23 from 13.3% CAGR in 2005-12. Consumption growth is linked to GDP growth which itself has moderated from 7.3% in FY2005-12 to 5.7% in FY2012-23, primarily due to the Covid shock. Still, the share of consumption within GDP rose from 56.2% in FY12 to 58.5% in FY23.
Rural consumption grew faster in the last decade. Rural spends grew by 9.2% CAGR vs urban at 8.5% CAGR. While the absolute level of spend of urban India is higher, rural India's spending has grown faster in the last decade. This has narrowed the gap in the rural-urban spending.
Significant shift in consumption basket is visible. A rise in income levels led to faster growth in discretionary items (as compared to food) and products up the value chain. Share of foods for rural/urban has declined from 59.4%/48.1% in 1999-2000 to 46.4%/39.2% in 2022-23.
Q2: Which are your overweight bets for the next financial year?
This story is from the April 2024 edition of Investors India.
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This story is from the April 2024 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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