Consumer durables sit pretty in Indian homes

TWO-THIRDS of urban households own television sets; refrigerators have found their way to one-third of urban homes; one-fourth of urban homes possess motor cycles/scooters and 4.6% of households drive around in their own cars. Ownership of consumer durables is growing steadily in both rural and urban areas, according to the findings of the National Sample Survey Organisation from its 61st Round. For example, 66% of urban homes and 26% of rural homes owned television sets in 2004-05.

The comparable figures were about 7% lower in both cases in 1999-2000, when the NSSO conducted its 55th Round. Electric fans are used by 82% of urban households and 38% of rural households — up by 12% and 13%. In 1993-94, refrigerators were used by only 12% of urban households and 1% of rural homes. Eleven years later, 4% of rural homes own fridges, while the comparable urban figure has reached 32%.

However, among durables, urban India has been spending more on repair of land and building and less on television and gold ornaments, according to a 2004-05 report on household consumption released by the National Sample Survey of India. Overall, the per capita expenditure on durables as a percentage of the per capita consumer expenditure in both urban and rural India has gone up since 1999-2000.

While the per capita expenditure of urban households on repair of land and buildings has gone up from 14% in 1999-2000 to 21% in 2004-05, the per capita expenditure on television has dropped from 10% in 1999-2000 to 6% in 2004-05. The report titled The Household Consumption of Various Goods and Services in India 2004-05, forms part of the National Sample Survey 61st round. In urban India, the per capita expenditure on other durables like gold ornaments and bicycles has also declined from 12% to 11% for gold ornaments and from 17% to 14% for bicycles. The per capita expenditure has, however, gone up in the case of motorcycles and scooters from 17% to 18%. Per capita expenditure increased by more than 100% over 1999-2005 in the case of four items in both rural and urban India. The expenditure on telephone charges went by 230% in urban India and 515.6% in rural India. Clearly, lower charges per call and easier access to telephones have persuaded Indians to step up their expenditure on telephony. India’s thirst for education is evident from a sharp rise in the expenditure on tuitions and other fees — 188% in rural India and 154% in urban areas. Expenditure on newspapers has gone up by 104% towns.

A surprise entry in this list of sharp spending rise in urban areas is insecticide and acid: 189% rise. Rural spending on taxis, autorickshaws went up by 119% and on petrol by 100%. The per capita expenditure of households on other durables in both rural and urban areas was more or less the same. On the whole, the per capita expenditure on durables as a percentage of the per capita consumer expenditure has gone up from 2.62% in 1999-2000 to 3.75% in 2004-05 in rural India and from 3.61% to 4.27% in urban India. The per capita expenditure on durables was Rs 21.74 in rural India and Rs 47.17 in urban India, against the average per capita consumer expenditure of Rs 579.17 in rural India and Rs 1104.60 in urban India.