DNA TV Show: Why are Indians spending more on clothes, less on food?

In 1974, a movie titled 'Roti, Kapda Aur Makaan' was released. If the same movie was made today, it might be called 'Kapda, Roti Aur Makaan.' This change reflects a shift in priorities among Indians. Once, food was the top priority, followed by clothing. But now, the trend has reversed. 

According to the Household Consumption Expenditure Survey (HCES) conducted by the National Sample Survey Office (NSSO), Indian families' spending on clothing has surpassed that on food. Compared to 2011, household expenditure in 2022-23 has more than doubled for Indian families. In rural areas, monthly household expenditure has risen from Rs 1430 to Rs 3773, and in urban areas, from Rs 2630 to Rs 6459.

The HCES report also reveals disparities in spending between different income groups. The poorest 5 per cent of rural households spend an average of Rs 1373 per month, while the richest 5 per cent spend Rs 10,501—a difference of over seven times. Similarly, in urban areas, the gap between the poorest and richest 5 per cent is more than tenfold.

The survey divides household expenditure into two main categories: food items and non-food items. Previously, most spending in Indian households went towards food. However, there has been a noticeable shift. Now, Indian families are spending more on items other than food.

This shift in spending patterns indicates changing lifestyles, influenced by increasing incomes and evolving consumer preferences.

Fashion expert Sakshi Nag explained the rise in spending on clothing and other discretionary items. She said that the post-Covid world increased people's interaction on social media platforms. "The information on these social media platforms not only reached the urban sphere, but also captured viewers from the rural landscape. As more and more people became aware of these consumer products, they took keen interest in buying the same," Nag said

She further added that several brands seized the opportunity and used social media and these influencers to speak about the brands as well as their products. Additionally, expenditure on clothing and footwear has increased, while spending on essential food items like pulses, fruits, and vegetables has decreased. This change reflects a broader societal transformation, where fast food and convenience items are becoming increasingly prevalent, even in rural areas.

Overall, the HCES report sheds light on significant shifts in Indian households' expenditure patterns, highlighting changing lifestyles and economic conditions.