LANGUAGE IN INDIA

Strength for Today and Bright Hope for Tomorrow

Volume 15:7 July 2015
ISSN 1930-2940

Managing Editor: M. S. Thirumalai, Ph.D.
Editors: B. Mallikarjun, Ph.D.
         Sam Mohanlal, Ph.D.
         B. A. Sharada, Ph.D.
         A. R. Fatihi, Ph.D.
         Lakhan Gusain, Ph.D.
         Jennifer Marie Bayer, Ph.D.
         S. M. Ravichandran, Ph.D.
         G. Baskaran, Ph.D.
         L. Ramamoorthy, Ph.D.
         C. Subburaman, Ph.D. (Economics)
         N. Nadaraja Pillai, Ph.D.
Assistant Managing Editor: Swarna Thirumalai, M.A.

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Changing Pattern of Consumption Expenditure in India

N. Surendran, Research Scholar
B. Mathavan, Professor of Economics

Abstract

Understanding the changes in the demand for different commodities is necessary for economic planning and designing appropriate policies related to production and distribution. As the consumption expenditure reflects the demand for goods and services, this paper examines the consumption expenditure and its changing pattern in rural and urban India using the data published in the quinquennial surveys on consumption expenditure conducted by NSSO during 27th to 66th rounds of NSS in the years 1972-73 to 2009-10. It was observed from the study that there has been a tremendous increase in the consumption expenditure in both rural and urban India. A continuous fall in the proportion of food expenditure accompanied by the increasing share of non-food expenditure was observed in both rural and urban India. Among the food items, the shares of expenditure on cereals and grams have been much higher in rural areas than in urban areas. Further a larger increase in the share of expenditure on miscellaneous goods and services in both rural and urban areas indicate a greater consciousness of health, education and other human development-related issues in both rural and urban areas.

Keywords: Economic Planning, Consumption Expenditure, Rural and Urban

Introduction

Most of the countries have been experiencing a drastic change in the roles of the Government and the market in bringing about their economic development. The primary objective of the Government in bringing about development has been on the conventional wisdom of economic growth, emphasizing the role of capital accumulation which depends primarily on domestic savings. Also the domestic capital is an important input for a rapid and all-round development, but what is most important is investment. Along with the value of internal savings, the value of investment depends upon the level of consumption which pushes up the investment to a higher level. (Pankaj K. Prabhat, 1998)

This is only the beginning part of the article. PLEASE CLICK HERE TO READ THE ENTIRE ARTICLE IN PRINTER-FRIENDLY VERSION.

N. Surendran, M.A., M.Phil.
Research Scholar

Dr. B. Mathavan, M.Sc., M.A., M.Com., M.Phil., Ph.D
Professor, Department of Economics
Annamalai University
Annamalainagar – 608 002
Tamilnadu
bmecoau@gmail.com
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