Lesson Keep Basics

In 2022-23, household savings in India dropped to 5.3% of GDP from 7.3% in 2021-22, but this doesn't tell the whole story. Indians are shifting assets, incurring debt, and experiencing significant losses in equity futures and options trading. A growing portion of savings is also going into cryptocurrencies.

- Monika Halan

Consumption pattern. A working paper (read it at tinyurl.com/3fpattbe) marks the share of food in household consumption to below 50% of total monthly household spending since 1947. As a nation, we are spending less on food not because we are eating less, but because rising incomes over time are increasing spending on non-food items. In addition to less food, we are eating less cereals, proteins and fruits than before. The paper marks the rise of served and packaged food overall and especially for the top 20% of the population. Yes, the quick delivery apps are having an effect on how we spend and what we spend on. These are not a faltering consumption pattern.