Use of consumer durables grows phenomenally in rural areas: Study
Updated: Apr 09, 2014 01:43:32pm
New Delhi, Apr 9 (KNN) With increasing purchasing power and aspiration for a better life in rural areas, Karnataka, Andhra Pradesh, Kerala, Rajasthan, Tamil Nadu and Gujarat have registered a phenomenal growth in rural consumption of consumer durable goods.
According to a study by the industry body Associated Chamber of Commerce and Industries (Assocham), the overall trend in rural areas during 2007-08 and 2011-12 was actually higher than that in the cities.
The top five states that registered a phenomenal growth rate in rural consumption expenditure of durable goods were Karnataka at 59.5 per cent, Andhra Pradesh at 44.3 per cent, Rajasthan at 40.7 per cent, Kerala at 40.4 per cent, and Gujarat at 37 per cent, during the period under review.
As per the CSO data, most of the states witnessed a double digit growth in consumer durables goods expenditure and much higher than the all-India figure during 2007-08 to 2011-12.
Other states which recorded a robust growth rate of rural consumption expenditure on consumer durable goods were: Tamil Nadu at 33.3 per cent, Madhya Pradesh at 27.2 per cent, Maharashtra at 25.2 per cent, Bihar at 25 per cent, Haryana at 23.9 per cent and Punjab at 22.7 per cent, said the Assocham study.
The states which have registered lower than the all-India rural consumption expenditure growth were: West Bengal at 15.7 per cent, Uttar Pradesh at 14.6 per cent, Assam at 13.3 per cent, and Odisha at 1.4 per cent.
“The study further suggests as the income level of rural people increases, consumption expenditure on consumer durables also goes up, reflecting the aspiration for a better life in the countryside. There also appears to be a positive nexus between consumer durable goods consumption expenditure and availability of basic infrastructure in rural areas, such as electricity,” said Assocham.
If we compare the consumption expenditure on consumer durable goods during 2004-05 to 2007-08, it indicates a different scenario. The consumer durable goods rural consumption expenditure was lower than urban consumption expenditure during the same period. While the consumer durable goods rural consumption expenditure growth rate was 11.4 per cent, the urban consumption expenditure growth rate was 11.8 per cent during the same period
However, under the impact of economic slowdown, in the recent past, consumer durable goods index of industrial production (IIP) has witnessed a sharp deceleration. “But once the overall industrial output is revived, rural India would again lead the growth of consumer goods”, the study said. (KNN/SD)
According to a study by the industry body Associated Chamber of Commerce and Industries (Assocham), the overall trend in rural areas during 2007-08 and 2011-12 was actually higher than that in the cities.
The top five states that registered a phenomenal growth rate in rural consumption expenditure of durable goods were Karnataka at 59.5 per cent, Andhra Pradesh at 44.3 per cent, Rajasthan at 40.7 per cent, Kerala at 40.4 per cent, and Gujarat at 37 per cent, during the period under review.
As per the CSO data, most of the states witnessed a double digit growth in consumer durables goods expenditure and much higher than the all-India figure during 2007-08 to 2011-12.
Other states which recorded a robust growth rate of rural consumption expenditure on consumer durable goods were: Tamil Nadu at 33.3 per cent, Madhya Pradesh at 27.2 per cent, Maharashtra at 25.2 per cent, Bihar at 25 per cent, Haryana at 23.9 per cent and Punjab at 22.7 per cent, said the Assocham study.
The states which have registered lower than the all-India rural consumption expenditure growth were: West Bengal at 15.7 per cent, Uttar Pradesh at 14.6 per cent, Assam at 13.3 per cent, and Odisha at 1.4 per cent.
“The study further suggests as the income level of rural people increases, consumption expenditure on consumer durables also goes up, reflecting the aspiration for a better life in the countryside. There also appears to be a positive nexus between consumer durable goods consumption expenditure and availability of basic infrastructure in rural areas, such as electricity,” said Assocham.
If we compare the consumption expenditure on consumer durable goods during 2004-05 to 2007-08, it indicates a different scenario. The consumer durable goods rural consumption expenditure was lower than urban consumption expenditure during the same period. While the consumer durable goods rural consumption expenditure growth rate was 11.4 per cent, the urban consumption expenditure growth rate was 11.8 per cent during the same period
However, under the impact of economic slowdown, in the recent past, consumer durable goods index of industrial production (IIP) has witnessed a sharp deceleration. “But once the overall industrial output is revived, rural India would again lead the growth of consumer goods”, the study said. (KNN/SD)
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