India household spending shifts toward non-food items and digital payments

A report by the State Bank of India's Economic Research Department reveals a significant shift in Indian household consumption patterns. Based on the Household Consumption Expenditure Survey 2023-24, food expenditure now accounts for approximately 32.82 percent of total household spending, while non-food goods and services make up roughly 67 percent.

Digital adoption is also rising, with 45.6 percent of Indian households using online shopping and digital payment channels for at least one consumption item. Digital transactions are most prevalent in consumables and services, which account for 39.68 percent of online purchases, and durable goods at 23.3 percent. In contrast, food purchases represent only 7.10 percent of digital transactions, with perishable items like vegetables, fruits, and meat remaining largely dependent on offline markets.

The study, which analyzed over 261,000 households, also noted regional disparities in dietary patterns. States such as Sikkim and Goa reported the highest expenditure on protein-rich foods, while Odisha, Chhattisgarh, and West Bengal reported the lowest. Additionally, the report identified gender-based differences in dietary diversity, with higher protein consumption observed among males in most states.