Expenditure patterns- Rural & Urban households

 Rural india is matching the promise of showing it’s consumption pattern as similar
to an urban household.

 In a rural household, out of every rupee spent- 53 paisa was spent on cereal and
foods, as compared to 40 paisa by an urban household.

 Doing the further breakdown in these expenses by a rural household- 17 paisa was
spent on cereal and cereal subsitutes, 8 paisa on milk and milk products, 6 paisa on
vegetables and 4 paisa on bevarages and other processesed foods.

 Whereas, by an urban household- 9 paisa was spent on cereal and cereal

subsitutes, 7 paisa on milk and milk products, 4 paisa on vegetables and 6 paisa on
bevarages and other processesed foods.
Comparison in monthly expenditure patterns between urban and rural households

Commodities Urban Rural

Fuel & Lighting 9% 10%

Bedding & Footwear 6% 7%

Medical Care 6% 7%

Sugar, Salt & spices 3% 5%

Ceareals 9% 17%

Education 3% 6%

Pulses & products 3% 2%

Source- Times Of India Survey.

Difference
comes
in
the
value
 Difference
comes
in
the
value
 According to the same survey, average expenditure in the rural areas is Rs. 19 a
day, and around Rs. 625 a month, whereas in urban areas it is Rs. 39 per day, and
around Rs 1,171 per month.
 Difference
comes
in
the
value
 According to the same survey, average expenditure in the rural areas is Rs. 19 a
day, and around Rs. 625 a month, whereas in urban areas it is Rs. 39 per day, and
around Rs 1,171 per month.
 Taking the example from the previous table, where the expenditure on
cereals, where 17% is spent in rural households and 9% in urban households,
but on comparing values, the difference is Rs. 3, as the expenditures are Rs.
107 for rural households and Rs. 110 for urban households.
Comparison in monthly expenditure patterns between urban and rural
households

Commodities Urban Amount (in Rs) Rural Amount (in Rs.)

Fuel & Lighting 9% 105.39 10% 62.5

Bedding & Footwear 6% 70.26 7% 43.75

Medical Care 6% 70.26 7% 43.75

Sugar, Salt & spices 3% 35.13 5% 31.25

Ceareals 9% 110 17% 107

Education 3% 35.13 6% 37.50

Pulses & products 3% 35.13 2% 12.50

Source- Times Of India Survey.