Archive for September, 2015

Infographic – India expenditure trend, urban

India Expenditure Trend Urban - trends

  • Urban India has seen an increase of 128% in MPCE(URP) based on current prices
    • Real MPCE (measured using a price deflator with 1987-88 as base) has increased 29% between ‘04 to ’11, a CAGR of 3.7%
  • Share of food in MPCE declined by about 4pp in urban India between ’04 -’12 , you can clearly see the light green band receding from the right end
    • A few more points that are not shown in the graph :
      • Within foods, except for Milk, fruits & Beverages, all other products categories tracked have fallen in contribution.
        • While Milk and fruits has increased by 1pp, beverages have increased from 15% to 18% within foods
      • Cereals have registered the largest decline – from 24% to 19%
    • Among the rest of expenditure, durable & minor durable type goods has seen the highest jump of 2.4pp followed by rent at 1.4pp and clothing & bedding at 1.3.
    • Also, notice the steady rise in medical and education expenses
    • Proportion of spends on entertainment have also risen, albeit off a small base

The method of computing MPCE is rather interesting ; next week we’ll share an infographic on that too.

  • Ravindra Ramavath
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September 22, 2015 at 2:47 pm Leave a comment


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