What’s Changing in Household Budgets?

A recent report by the State Bank of India (SBI) reveals how Indian households have changed their spending habits over the last 12 years. People are spending less on food and focusing more on other things like hygiene and everyday essentials. These changes reflect not just lifestyle changes but also the effects of rising incomes and government policies.

Spending on food items like cereals and pulses has gone down noticeably. In rural areas, families used to spend around 53% of their income on food back in 2011–12. Now, that’s dropped to about 47%. In cities, food expenses have also reduced, from 43% to just under 40%. It’s a clear sign that food isn’t taking up as much of the budget as it used to.

Non-Food Spending on the Rise

On the flip side, spending on non-food items has increased. In rural areas, over half of household budgets now go toward non-food expenses, compared to 47% a decade ago. In urban areas, this share has grown from 57% to 60%. Things like toiletries, hygiene products, and other essentials have seen a noticeable jump.

Interestingly, spending on clothes and footwear has dipped slightly, partly because of lower taxes under GST. The report also notes that families are spending less on taxes and cess than before, which is likely another outcome of GST reforms.

Why This Matters

This shift shows how life in India is evolving. As incomes grow and living standards improve, people are spending on things beyond just food. Campaigns like Swachh Bharat have played a role too, encouraging better hygiene and cleanliness, especially in rural areas. It’s also a sign that Indian families are slowly aligning with global spending trends, focusing more on quality of life.

Conclusion: The Bigger Picture

This report from SBI paints a clear picture of changing priorities in Indian households. While food expenses are going down, the focus on essentials like hygiene and other non-food items is growing. It’s a sign of progress, but it also means we need to keep an eye on how these changes impact both urban and rural families.





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