Changing tastes and India’s growth story

The Ministry of Statistics and Programme Implementation (MoSPI) recently released the results of its second survey conducted post-Covid-19 pandemic, covering the period from August 2023 to July 2024. The survey estimates the monthly per capita consumption expenditure (MPCE), based on the data collected from 2,61,953 Indian households, at Rs 4,122 for rural areas and Rs 6,996 for urban areas, excluding the values of items received free of cost through various social welfare programmes.

A closer examination of the Household Consumption Expenditure Survey (HCES) reveals significant socio-economic changes in India. One striking trend is the shift in household expenditure priorities. The data indicates that spending on beverages, refreshments, and processed foods has surpassed that on traditional staple grains. Non-food expenses have also increased, with notable allocations for conveyance, clothing, bedding, footwear, entertainment, durable goods, and rent. These patterns align with broader societal changes, such as rising living standards and increased migration within the country. 

The preference for beverages and processed foods over grains reflects the changing dietary habits driven by urbanisation, exposure to global lifestyles, and rising disposable incomes. Urban lifestyles, with their emphasis on convenience, have made ready-to-eat and processed foods attractive. The declining consumption of grains also signals a transition from agrarian to
urbanised lifestyles, where households rely less on homegrown produce.

This change is not merely a matter of taste but indicates improved economic well-being. Higher incomes enable households to diversify their diets and opt for premium food choices, moving away from subsistence-based consumption. These choices also reflect aspirations to align with global consumption patterns.

Non-food expenditure patterns further reflect the urban-centric lives of Indian households. Increased spending on conveyance indicates the mobility of a workforce frequently relocating for better employment opportunities. Rising rent expenses point to heightened housing demand in urban areas, driven by rural-to-urban and inter-urban migration. The high allocation to durable goods shows desire for comfort and technological upgrades, while greater spending on entertainment signals the growing importance of leisure in contemporary Indian lifestyles.

These consumption patterns indicate a broader societal transformation from a rural, agrarian framework to an urban, aspirational one. Cities continue to attract migrants with promises of better jobs, education, and healthcare. This constant movement points toward a population that is dynamic, adaptive, and responsive to economic and social changes.

Migration remains a key outcome of these spending trends, occurring not only from villages to cities but also within urban centres. Such mobility points to the adaptability and aspirations of individuals and families seeking higher incomes, better amenities, and improved quality of life. Together, these developments present an Indian in motion—economically, socially, and literally. 

However, the Economic Advisory Council to the Prime Minister (EAC-PM) flagged a slowdown in domestic migration in its December 2022 report. This report, part of a broader review of India’s economic challenges and trends, examined migration patterns in the context of the Covid-19 pandemic and its socio-economic aftermath. At first glance, this finding appears at odds with the MoSPI survey, which suggests increased migration linked to higher spending on processed food, rent, and durable goods. 

These findings can be reconciled through nuanced interpretation. The EAC-PM report captured data up to early 2023, a period when many migrants were still returning to their home states in the pandemic’s aftermath. In contrast, the MoSPI survey was conducted later, during a phase of post-pandemic recovery. Economic revival and the reopening of urban job markets likely spurred higher migration rates, as reflected in the survey. 

The MoSPI data, covering 2023–2024, may represent a recovery phase with increased urban consumption, improved living conditions, and renewed job prospects in cities. This period also saw sectors such
as manufacturing, services, and construction regaining momentum, attracting migrants. Meanwhile, the EAC-PM report’s findings may capture longer-term impacts of pandemic-induced disruptions. 

In this sense, household consumption patterns offer
a glimpse into India’s growth trajectory: from an agrarian to an industrialised, urban economy.

(The writer is an assistant professor at the Department of Economics, Christ Deemed to be University, Bengaluru)