Latest news with #HouseholdConsumptionExpenditureSurvey2023-24
The Wire
19-06-2025
- Business
- The Wire
How Many Thalis Indians Can Afford – and What That Says About Their Standard of Living
In 2014, during the campaign for the elections to the Lok Sabha, Prime Minister Narendra Modi had announced that 'Achche din aane waale hain (Good times are to come)' for Indians, assuming, naturally, his party would be forming the low levels of material consumption, good times for most people would be associated with a rise in consumption. The publication earlier this year of the National Sample Survey's (NSS's) Household Consumption Expenditure Survey 2023-24 (HCES 2024), based on a survey conducted between August 2023 and July 2024, provides an opportunity to assess whether a faster rate of growth of consumption has indeed been of consumptionIn Table 1 are presented the growth rates of monthly per capita expenditure (MPCE) since 2011, the year of the last consumption survey of the previous decade. .Table 1: The growth of monthly per capita consumption expenditureRuralUrbanYearTotal growthCAGRTotal GrowthCAGR2004-05 to 2011-1235.67%4.45%35.14%4.40%2011-12 to 2023-2445.38%3.17%38.10%2.73%Notes: CAGR is the average annual growth rate. Authors' calculation from HCES 2024. Expenditure is at 2011-12 prices. The data point to a substantial decline in growth rate of consumption after 2011 for the urban population and a significant one for the rural. This should be kept in mind while reading reports of the buoyancy of India's economy, notably the feature that it is currently the fastest growing major economy of the world. The slowing of consumption growth is not surprising, given the slowing of the rate of growth of the economy across almost all its sectors during the past conclusion would be that that while consumption has continued to grow in India, the rate of growth has actually slowed. Economic policies adopted since 2014 have not been able to raise it. The 'good times', as reflected by the growth of consumption, have not come any faster than they have been coming before read: Why India Needs to Update Its Own Poverty LineInequalityThe consumption shares of the top 10% and bottom 50% of the population for three years, enabling a study of its change over time, are presented in Table 2. While there is growth in inequality in the first of the two sub-periods represented, there is an improvement in the second one, which covers a decade after 2014. This improvement is notable only for the urban section of the bottom 50%, though. The reduction of consumption inequality since 2011-12 is also borne out by the Gini coefficient presented in HCES 2024. Despite the improvement recorded, inequality remains high when the share of the bottom 50% is compared to that of the top 10%.It may be mentioned that the distribution of consumption revealed by HCES 24 is less unequal than that of the distribution of income in India published by the Paris-based World Inequality Lab. Also, the latter source presents data showing an increase in income inequality during the same period. These divergent trends are not necessarily contradictory, however, as for any given increase in income across the population consumption may be expected to rise more at the lower levels of 2: Inequality (consumption shares)2004-052011-122023-24RuralUrbanRuralUrbanRuralUrbanTop 10%.23.26.25.30.21.24Bottom 50%.33.28.31.26.33.31Source: Authors' calculation from HCES standard of living: A thali indexAs we have seen, there has been growth of consumption in India since 2014 and a reduction in its inequality . But what can be said of the standard of living implied by the level of consumption today?We evaluate the standard of living based on a specific metric, the number of thalis afforded. This is arrived at by translating the daily per capita expenditure on food into the number of thali meals that it would have commanded in the year of the survey, 2023-24, across the population. We consider the choice of the thali meal as a measure of the standard of living as intuitive, for it represents a recognisable unit of food intake across the country, even if the exact term for it may vary. We adopt two thali meals a day as the minimum acceptable standard of this raises the question of the price of a thali to be used in estimating the real value of consumption A ready source of this information is the rating and analytics agency Crisil, which publishes the average cost of preparing a thali at home, both vegetarian and non-vegetarian, based on input prices prevailing in north, south, east and west India. For a vegetarian thali in 2023-24 it came to approximately Rs 30 on average over the year. The cost of preparing a non-vegetarian thali in that year was reported as Rs value of food consumption, termed 'MPCE with imputation' by the NSS, used here includes purchases from the public distribution system, the imputed value of supplies 'received free of cost by the households through various Social Welfare Schemes', 'cooked food received free in workplace' and 'cooked food received as assistance'. While data on the last two items are available in HCES 2024, the value of free supplies of food had to be calculated. The data sources for this item are listed at the bottom of Tables 3 and of the number of thali meals per day afforded across the population are presented, for rural and urban India, respectively, in Tables 3 and 3: The thali index of consumption, Rural IndiaFractilesMonthly per capita expenditure on food with imputation (Rs.)Daily per capita expenditure on food with imputation (Rs.)Number of vegetarian thalis affordedNumber of non-vegetarian thalis afforded 0-5%1060.3635.351.180.615-10%1281.1542.711.420.7410-20%1444.1648.141.600.8320-30%1609.4653.651.790.9230-40%1755.1358.501.951.0140-50%1901.7463.392.111.0950-60%2043.0268.102.271.1760-70%2217.4073.912.461.2770-80%2428.5880.952.701.4080-90%2735.5991.193.041.5790-95%3101.35103.383.451.7895-100%3876.47129.224.312.23Notes: Authors' calculation from Table A10F of HCES 2024 and estimate of the real value of consumption of food serves as guide to the standard of living of the population at large . In 2023-24 in rural India, up to 40% of the population could not afford two vegetarian thalis a day, up to 95% of the population could not afford two non-vegetarian thalis a day, and up to 80% could not afford the combination of one vegetarian and one non-vegetarian thali at a total cost of Rs 88 a day. In the same year in urban India, up to 10% of the population could not afford two vegetarian thalis a day, up to 80% could not afford two non-vegetarian thalis, and up to 50% could not afford the combination of one vegetarian and one non-vegetarian thali a day. Food deprivation, at least in rural India, is more widespread than it is 4: The thali index of consumption, Urban IndiaFractilesMonthly per capita expenditure on food with imputation (Rs.)Daily per capita expenditure on food with imputation (Rs.)Number of vegetarian thalis affordedNumber of non-vegetarian afforded0-5%1344.5144.821.490.775-10%1656.7555.221.840.9510-20%1895.5563.192.111.0920-30%2145.9071.532.381.2330-40%2350.3178.342.611.3540-50%2572.2085.742.861.4850-60%2775.9292.533.081.6060-70%3061.41102.053.401.7670-80%3370.61112.353.751.9480-90%3873.95129.134.302.2390-95%4475.68149.194.972.5795-100%5984.70199.496.653.44Source: Authors' calculation from Table A10F of HCES 2023-24 and the analysis of aggregated data, ethnographic studies of the labour process and journalistic reportage from the field all have value in furthering our understanding of the standard of living in India. Some studies of this kind already exist, including by Anumeha Yadav and T. recent poverty estimates for India reflect the standard of living?The publication of HCES 2024 elicited poverty estimates for India from diverse sources, among them the State Bank of India and World Bank. These mostly follow the practice of establishing a poverty line based on consumption possibilities. The poverty line identifies the purchasing power needed to satisfy the daily calorie intake deemed necessary. The proportion of the population with consumption expenditure less than the poverty line is classified as 'poor'.However, it would be agreed upon, we assume, that a measure of the standard of living in terms of tangible goods afforded would yet be useful to have. This was the motivation that guided the adoption of a thali index of consumption by us. The resulting estimates of the level of consumption across the population provide perspective on the estimates of poverty in India that have followed the publication of the HCES 2024. Among them, the one from the State Bank of India shows poverty to be less than 5% in both rural and urban India. As seen above, the thali index of the standard of living, on the other hand, points to higher levels of food deprivation based on the standard of two thalis per day as the minimum acceptable food read: Reality Check: Beyond Statistics, is Poverty Actually Reducing in India?This difference very likely arises because poverty studies tend to assume that households or individuals are free to spend all their income on food. The assumption is untenable, as some items of expenditure – such as on health, education, housing, transportation and communication (read mobile phone) – assume priority, for expenditure on them is needed to engage in economic activity. This circumstance could effect a squeeze on expenditure on food, which along with the price of food determines actual consumption households may have to eat less to secure their livelihood. So, starting out with the actual expenditure on food and translating it into a measure of command over food is, in our view, realistic. The relevance of such an approach may be understood by noting the following. The estimates of poverty in the SBI report are based on an updation of the Tendulkar poverty line for 2011-12 by applying the subsequent inflation rate. Through this procedure, its authors arrive at monthly poverty lines of Rs 1,632 for rural areas and Rs 1,944 for urban areas in 2023-24. We can see from Tables 5 and 6, respectively, that these expenditure levels would not have translated into two vegetarian thalis per person daily for up to 30 % of the rural population and 20% of the urban in that year. Of course, this is assuming that the income implied by the poverty line is entirely on food.A second set of poverty estimates, using data from the HCES 2023, however, has been published by the World Bank this April. They are even more optimistic than those from the State Bank of India, pegging 'extreme poverty' at 2.8% for rural India and 1.1% for urban India. We leave it to readers to compare these poverty estimates with the estimates of the standard of living in India in 2023-24 using the thali findings using a thali index of the standard of living suggests that there is a case for reviewing the measurement of poverty in India. For a start, we would argue for a poverty measure that includes at least two thali meals a day. In this context, we refer to the emerging practice of viewing poverty as multidimensional. This is both useful and an improvement over the focus hitherto on income poverty. However, a declining multidimensional poverty based on an index that comprises up to 12 indicators of deprivation can mask a persisting food deprivation, which in our view must remain at the core of appraising the standard of living, and thus estimates presented here indicate that the levels of poverty as food deprivation in India are likely higher compared to the estimates based on the extant approach to the measurement of income poverty. The unit price of food used to arrive at feasible food consumption is central to this exercise. Our study points to the salience of the price of food for the standard of living in India, a factor which receives far too little attention from policy makers but will remain crucial to the solution to the problem of poverty in of this article were previously published on Ideas for India. Pulapre Balakrishnan is Honorary Visiting Professor, Centre for Development Studies, Thiruvananthapuram and Aman Raj is Teaching Fellow, Krea University, Sri City. We thank Aditya Bhattacharjea, Mahendra Dev, Udaya Shankar Mishra, P.C. Mohanan, M. Parameswaran, Indira Rajaraman, Preeti Sampat and Rishi Vyas for advice and discussion. Errors if any would be ours.
Mint
21-04-2025
- Business
- Mint
Consumer brands set to write the playbook of influencer marketing to push rural sales
With social media catching on in rural India, consumer brands have started investing 30-35% of their influencer marketing budgets beyond metro cities. However, the cultural disconnect between the marketers from urban centres and rural consumers is challenging the maximization of returns. To bridge the divide, companies are experimenting with strategies such as turning viral moments into campaigns and partnering with smaller, regional influencers. This trial-and-error approach aims to crack the code for effective influencer marketing that will appeal to rural consumers. Also Read | Court battles are defining boundaries for influencers 'Rural markets are challenging, but also full of untapped potential," said Rajiv Dubey, vice president and head of media and Dabur India . The executive highlighted that the return on investment (ROI) in rural influencer marketing is lucrative compared to urban markets due to lower costs, encouraging the industry to invest 30-35% of influencer marketing budgets on rural and semi-urban segments. Also Read | Faceless influencers are becoming famous online The internet penetration in rural India has played a major role, especially during covid. 'Traditionally, TV and local events have been one of rural India's most effective and popular marketing channels. However, rising mobile penetration has played a catalytic role in expanding the reach of digital content, enabling influencer marketing to gain deeper traction even in remote regions," said Tarun Arora, chief executive officer (CEO) of consumer wellness brand Zydus Wellness , that is the parent company of seven household brand names including Complan, Glucon-D and Nycil. 'The average rural FMCG basket grew 14% from Q1 2024 to Q1 2025. So while challenges remain, the rural opportunity is greater than ever, and brands that successfully leverage tailored communication and distribution strategies can significantly capitalize on this evolving opportunity," Arora added. Also Read | From Dubai to Bastar: tourism boards embrace influencers to attract travellers According to a January report by industry body Internet and Mobile Association of India (IAMAI) and consulting firm Kantar, internet adoption in rural India has grown 85% since 2019. In fact, there are 39 million more internet users in rural India than in urban areas. Despite that, brands struggle to fully utilise the potential of these markets and shrink the 71% rural-urban monthly per capita consumption expenditure gap identified in the Household Consumption Expenditure Survey 2023-24, published in January. 'The complexity lies in their linguistic, cultural, and infrastructural diversity. Unlike urban India, where digital penetration and purchase behaviour are more uniform, rural India demands hyper-localization—both in messaging and media. The trust deficit is also higher; rural consumers rely more on community word-of-mouth and visible proof," explains Dabur's Dubey. Influencer marketing agents observe that the lack of proximity heightens the cultural gap. 'The marketers belong to an urban setup, making it easier to devise campaigns for an audience they relate to. That is because they speak the same language as them, and consume the same products and content," said Praanesh Bhuvaneswar, CEO at influencer marketing firm Qoruz. 'With rural consumers, however, they don't have a playbook to go by, so there is a lot of trial and error that goes into designing influencer marketing campaigns for them, and you never know what will click," Bhuvaneswar added. This draws influencers to the centre of consumer brands' various marketing experiments. Take Delhi's Nangloi-based 16-year-old who goes by the name Ayush Chaurasiya on Instagram. The schoolgoer recently went viral for mispronouncing croissant as 'Prashant' while playing around with the 'name this thing' filter on Instagram, gaining him over 75,000 followers on his Instagram account @ishowayuu in just three months. 'I wanted to be a creator and was making content on YouTube for 7 months, but saw no growth. I downloaded Instagram for the first time in February on my friend's recommendation when I entered 11th grade, borrowed my brother's id to sign in, and boom, my second video just randomly went viral, gaining almost 22 million views," Chaurasiya said. Brands such as Britannia, Myntra and Philips quickly hopped on to turn the boy's virality into a marketing opportunity. 'A large chunk of my followers are from villages in UP and other parts of north India. Since my Indianized way of pronouncing English words is relatable content for them, the viral video led to a lot of brands approaching me for campaigns to attract them," he said. He said he was initially overwhelmed by the world of influencer marketing. But now, as he is slowly warming up to it, he is creating more content and working with brands that come his way. He has worked with 19 brands. Although viral metro-based creators like Chaurasiya appeal to rural audiences, brands are not letting go of the authentic connection that regional influencers offer. They are capitalizing on the potential of vernacular creators, tapping into their organic appeal and genuine connections with rural communities. India's fast-moving consumer goods (FMCG) leader Hindustan Unilever (HUL) is betting on regional influencer marketing. 'We have taken a committed leadership position on social media. We have close to 8,000 influencers, which we will expand further. We are building a strong network of vernacular influencers because local languages are very critical on social media," Rohit Jawa, CEO and managing director of the consumer giant, said in a speech at their capital markets day 2024 event in November. The executive said that 40% of the company's media budget is dedicated to media expenditure, and influencers are a large part of it. Further queries shared with HUL on Wednesday remained unanswered till press time. Similarly, fashion e-commerce brand Myntra views regional language influencers as an important tool to tap into markets beyond the urban setup. 'With the rapid rise in digitization, e-lifestyle adoption is accelerating across Tier 2 and beyond markets. A vibrant wave of content is now emerging from creators in these regions—rooted in local languages, cultural nuances, and everyday relevance," Sunder Balasubramanian, Myntra's chief marketing officer, wrote in response to queries emailed by Mint . Balasubramanian highlighted that hyper-local creators deeply resonate with their local audiences, fostering a strong sense of trust and authenticity. Their content often mirrors the latest trends in fashion and beauty, serving as a go-to source of inspiration for their audiences 'By tapping into these authentic and hyper-local voices, we have deepened Myntra's presence in Tier 2 and beyond markets. Thousands of regional creators present across Instagram and YouTube are helping us drive discovery, spark inspiration, and build stronger brand affinity," Balasubramanian added. Maharashtra's Devbag-based influencer Ankita Walawalkar, who has 1.1 million followers on her Instagram handle @kokanheartedgirl, is a prime example of this. She started creating content in December 2022 in Hindi. But when one reel of her speaking her regional language, Malvani, a Konkani dialect that borrows a lot of Marathi words, became very popular, she pivoted to regional language content. 'Those were the days when regional influencers were not in the spotlight, so I figured it's better to be a big fish in a small pond than a small fish in a big one," Walawalkar underscored. She has followers from all over the country and even abroad, but a majority of them are Marathi-speaking folk from different parts of Maharashtra. Roughly 60% of her followers are from a non-urban set-up. 'This language helped me connect with everyone, and now I see a promising future because regional influencers are bringing authenticity to the digital space. Our connect is more relatable to our people and gives us sustained engagement, which is valuable for brands seeking to tap into regional markets," Walawalkar added. She has worked with brands like Dabur and Santoor. While Walawalkar has a million-plus followers, brands also lay a massive focus on regional micro and nano influencers who have less than a hundred thousand followers but have a deep connection with their local audience. 'Unlike urban influencer strategies that often use broad-based celebrity endorsements, rural influencer marketing hinges on micro and nano influencers who possess deep local ties, authentic connections, and fluency in regional dialects. Their culturally nuanced storytelling helps build credibility, reduce scepticism, and drive genuine product adoption," Arora of Zydus Wellness noted . Dabur's Dubey also highlighted that despite the content being less polished and more raw, these influencers rake in twice the organic reach per rupee spent, especially during peak seasons. Thus, Dabur collaborates with such creators across platforms, including Instagram, YouTube, and Indian content platforms like Moj and Josh. However, Dubey added that despite the better ROI, the revenue volumes are smaller, so brands must focus on quantity to scale and reap the benefits from this rural influencer marketing strategy.
