Mobiles, vehicles: How Indians are spending their money
25 Nov 2025

A recent survey by the Economic Advisory Council to the Prime Minister (EAC-PM) has revealed a major shift in household spending patterns in India.

The report shows that families are now investing more in durable assets like personal goods, cooking and household appliances, instead of basic necessities such as clothing and footwear.

This trend is particularly visible among even the bottom 40% of households.

Shift in consumption driven by awareness and access
Consumption change

The report attributes this shift in consumption to rising awareness, improved financial access, and also better market connectivity.

These changes have major implications for productivity levels and improvements in overall living standards.

The survey analyzed data from the Household Consumption Expenditure Survey 2011-12 and 2023-24, revealing that motor vehicles are the fastest-growing durable asset in India.

Urban-rural convergence in asset ownership
Asset growth

The report highlights a significant urban-rural convergence in asset ownership, with the bottom 40% of households making substantial progress.

This is particularly true for urban areas where improved road infrastructure, better market access, and wider vehicular financing options have contributed to this growth.

However, TV ownership has increased at a slower pace than other durable goods and even declined in some regions among the overall population and bottom 40%.

Mobile phones replacing televisions as primary medium
Tech impact

The report notes that widespread mobile access has changed consumption patterns, with mobile phones increasingly replacing/complementing TVs as the main source of information and entertainment.

This trend is especially strong in the urban areas where ownership gaps across consumption groups have narrowed more quickly.

The survey found that motor vehicle ownership disparities have steadily declined in the rural areas but at a much faster pace in urban regions.

Mobile phones achieve near-universal adoption
Tech equity

Mobile phones have achieved almost universal adoption across both the top 20% and bottom 40% consumption categories.

This makes them the most equitable durable asset in the country.

The report also shows that the households without any durable asset category now account for only 5% or less across all groups and geographies, indicating a significant decline in asset poverty.