Evolving Household Spending in India

Indian households have shown interesting spending patterns over the past decade, particularly concerning food. Despite the rise in per capita GDP, households continue to allocate approximately 28-32% of their budgets to food, contrary to Engels' Law, which predicts a decline in the proportion of income spent on necessities as wealth increases. This could be attributed to uneven income growth, where a significant portion of the population has not experienced substantial earnings, coupled with real wages shrinking in recent years. Additionally, shifts in food spending indicate a growing preference for protein-rich options at the expense of traditional staples, while there is a slight decline in expenditure on sugary products.