Indians’ Shift in Consumption Patterns: A Decline in Pulses and Cereals, Focus on Non-Food Items, Finds SBI Report

According to a recent analysis by the State Bank of India (SBI), Indian households have undergone a significant transformation in their spending habits over the past 12 years, reflecting a noticeable shift from food-related expenses to non-food items. The report highlights a decline in the consumption of pulses and cereals by more than 5 percent, both in rural and urban regions.

The data reveals that the shift in consumption patterns is evident in both rural and urban areas. The SBI report specifically notes a significant decrease in the consumption of cereals and pulses, marking a drop of over 5 percent across these regions. This change is part of a broader trend where spending priorities are evolving, influenced by economic growth, government policies, and shifting lifestyles.

A closer look at household expenditure patterns shows a marked reduction in the share allocated to food items. In rural India, the percentage of spending on food dropped from 52.9 percent in 2011-12 to 47.04 percent in 2023-24, which represents a decline of nearly 6 percentage points. Urban areas saw a more moderate but notable reduction, with the share of food expenditure falling from 42.62 percent to 39.68 percent, a drop of about 3 percentage points.

Conversely, non-food items have become a more prominent part of household budgets. In rural areas, the share of spending on non-food items rose from 47.1 percent in 2011-12 to 52.96 percent in 2023-24, reflecting a gain of 5.86 percentage points. Similarly, urban areas experienced an increase in non-food spending, with the share rising from 57.38 percent to 60.32 percent, marking a 2.94 percentage point increase.

The report also sheds light on other changing expenditure patterns. Spending on toiletries, for instance, has surged, largely attributed to the success of the Swachh Bharat Abhiyan and the growing public awareness of hygiene. Additionally, the share of taxes and cess in household expenditures has declined, a trend likely due to the rationalization of Goods and Services Tax (GST) rates.

Interestingly, the data also reveals a decrease in spending on clothing and footwear, which can be linked to the reduced GST rates in comparison to the earlier taxation system.

This shift from food to non-food spending underscores the changing socio-economic landscape in India. Factors such as rising incomes, enhanced living standards, and government initiatives promoting hygiene and affordable taxation are reshaping consumer priorities, particularly in rural India. The overall transformation in consumption behavior reflects India’s dynamic and evolving economy, aligning with broader global trends in consumer spending.