South tops rural consumer durables consumption: ASSOCHAM study
Better monsoon and incerasing purchasing power among southern parts of Rural India has speeded up growth in consumption of consumer durable goods.
According to an ASSOCHAM study with increasing purchasing power and aspiration for a better life in the villages, Karnataka, Andhra Pradesh, Kerala, Rajasthan, Tamil Nadu and Gujarat have registered a good growth in rural consumption of consumer durable goods.
Through 2007-08 to 2011-12, the overall trend in rural areas was higher than the cities.
The top five states which registered phenomenal growth rate of durable goods rural consumption expenditure were Karnataka (59.5 %), Andhra Pradesh (44.3%), Rajasthan (40.7%), Kerala (40.4%) and Gujarat (37.0%) during the period, the study said.
As per the CSO data, most of the states witnessed a double digit growth in consumer durables goods expenditure and much higher than all India during the said period.
The other states which have recorded robust growth rate of rural consumption expenditure on consumer durable goods were Tamil Nadu (33.3 per cent), Madhya Pradesh (27.2 per cent), Maharashtra (25.2 per cent), Bihar (25.0 per cent), Haryana (23.9 per cent) and Punjab (22.7 per cent), reveals the ASSOCHAM paper.
Odisha, however, registered nominal growth in consumer durable goods consumption expenditure. The all India rural consumption expenditure on consumer durable goods grew at a compound annual growth rate of 16.5 percent during 2007-08 to 2011-12 whereas urban consumption expenditure on this head increased 15.6 percent per annum, an ASSOCHAM release said here today.
The states which have registered lower than all India rural consumption expenditure growth were West Bengal (15.7 per cent), Uttar Pradesh (14.6 per cent), Assam (13.3 per cent) and Odisha (1.4 per cent). 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, the rural India would again lead the growth of consumer goods, the study says.
(Posted on 08-04-2014)