NEW DELHI: Driven by increasing purchasing power and higher aspirations for a better life, rural India has overtaken cities in the growth rate of spending on consumer durables, says a study.
The growth rate is highest in states such as Karnataka, Andhra Pradesh, Kerala, Rajasthan, Tamil Nadu and Gujarat.
The all India rural consumption expenditure on consumer durable goods grew at a compounded annual growth rate of 16.5 per cent from 2007-08 to 2011-12, whereas for urban areas it was 15.6 per cent, said the Assocham study. “As the income level of rural people increases, consumption expenditure on consumer durables also goes up reflecting aspirations for a better life in the countryside,” it said.
The findings point to a changing scenario as rural consumption expenditure growth rate on durables was lower at 11.4 per cent, than that of urban spending (11.8 per cent) from 2004-05 to 2007-08. The study found that Karnataka (59.5 per cent), Andhra Pradesh (44.3 pc), Rajasthan (40.7 pc), Kerala (40.4 pc) and Gujarat (37 pc) were at the top in terms of growth rate from 2007-08 to 2011-12 for rural spending on durables. —PTI