Poverty on rise in India? People spending less on food, malnutrition concern serious: Report – India News

The monthly spending of Indians has declined for the first time in four decades, indicating that poverty in India has increased in recent years, the Business Standard has claimed this in a front-page report. It says the average consumer spending in India registered a dip of 3.7 per cent in 2017-18 as compared to the consumer spending in 2011-12.

Quoting experts, the report says the “most worrying” trend is that food consumption in rural India has declined by 10 per cent, “implying worsening malnutrition in the country”.

The report is based on the latest consumer expenditure survey – Key Indicators: Household Consumer Expenditure in India-conducted by the National Statistical Office (NSO).

The newspaper claims, “The survey was conducted by the NSO between July 2017 and June 2018. The report, which was approved by a committee of June 19, 2019, has been withheld by the NSO due to its ‘adverse’ findings, four people aware of the development told this newspaper (Business Standard).”

According to the Business Standard report, the NSO survey had found that in 2011-12, the average amount spent by an Indian was Rs 1,501. But by 2017-18, this amount fell to Rs 1,446.

The dip is glaring in rural India as the consumer spending in villages declined by 8.8 per cent in this period, the report says. In comparison to rural India, urban centres have registered a increase of 2 per cent in consumer spending.

The report says the period in which the NSO carried out its survey was just after the Narendra Modi government’s demonetisation decision and the year in which the Goods and Services Tax (GST) was rolled out.

FIRST TIME IN 4 DECADES

The Business Standard reports claims that this is the first time in four decades that consumer spending has declined in real terms.

This is the first time since 1972-73 when consumer expenditure has declined in real terms, the paper quoted Himanshu, associate professor at the Jawaharlal Nehru University’s Centre for Economic Studies and Planning as saying.

In 1972-73, the decline was due to a global oil crisis. “Before that, in the mid-1960s, consumption fell due to a domestic food crisis,” the report said.

SPENDING ON FOOD DECREASING

Quoting the unpublished NSO report, the newspaper said the average monthly spending on food in rural areas in 2017-18 was Rs 580. In 2011-12, the amount was Rs 643, thus indicating a decline of nearly 10 per cent (both amounts are in real terms).

In urban areas, the monthly food spending saw miniscule rise from Rs 943 in 2011-12 to Rs 946 in 2017-18.

“It’s a real concern from the point of view welfare of people. A fall in food spending, especially in villages, shows that malnutrition has increased. It would be fair to say poverty must have increased significantly,” Abhijit Sen, former Planning Commission member was quoted as saying in the report.