Gujarat model? Half of Indian states' households have higher purchasing power

By Rajiv Shah

In what many may consider as another “expose” of the Gujarat development model sought to be sold across the country during the Lok Sabha elections, the latest National Sample Survey Organisation (NSSO) report, “Level and Pattern of Consumer Expenditure, 2011-12”, released in February 2014, has revealed that the average spending capacity of Gujarat households, as reflected in monthly per capita expenditure (MPCE), is lower than 11 out of 20 major states in the rural areas and nine out of 20 major states in the urban areas.

The figures suggest that at the MPCE of Rs 1,536, spending capacity of Gujarat’s rural households is lower than Andhra Pradesh (Rs 1,754), Haryana (Rs 2,176), Himachal Pradesh (Rs 2,034), Jammu & Kashmir (Rs 1,743), Karnataka (Rs 1,561), Kerala (2,669), Maharashtra (Rs 1,619), Punjab (Rs 2,345), Rajasthan (Rs 1,598), Tamil Nadu (Rs 1,693), and Uttarakhand (Rs 1,726). The all-India average for the rural areas, on account of even lower spending capacity in poorer states, is lower than Gujarat’s – Rs 1,430.
As for the urban areas, things are not quite different, with Gujarat ranking at No 10th with the households’ average spending capacity, reflected in MPCE, being Rs 2581. This is less than that of Andhra Pradesh (Rs 2,685), Haryana (3,817), Himachal Pradesh (Rs 3,259), Karnataka (Rs 3,026), Kerala (Rs 3,408), Maharashtra (Rs 3,189), Punjab (Rs 2,794), Tamil Nadu (Rs 2,622) and West Bengal (Rs 2,591). As for the all-India average, despite lower purchasing power in the poorer states, the urban MPCE higher than Gujarat’s -- Rs 2,630.

What is particularly appalling is that, with lower purchasing power, Gujarat’s households are forced to spend a higher percentage of their earnings on foodgrains. Thus, the figures show that, in rural Gujarat, on an average, 55 per cent of the spending go into foodgrains consumption, which means that they are forced to spend considerably less on non-foodgrains, including education, health, consumer durables, and entertainment.
The states whose households spend higher percentage than Gujarat in the rural areas on foodgrains, significantly, are mainly five poorer states -- Assam (61 per cent), Bihar (59 per cent), Jharkhand (58 per cent), Odisha (57 per cent), and West Bengal (58 per cent). The all-India average percentage of spending on foodgrains is 53 per cent – lower than Gujarat’s.
Things are, in fact, worse in urban areas, whose Gujarat households on an average spend 45 per cent of their spending on foodgrains. The states whose urban area households spend more than Gujarat are just three -- Assam (48 per cent), Bihar (51 per cent), and Jharkhand (47 per cent), with Rajasthan and Odisha equaling Gujarat (45 per cent). The all-India average on this score is 43 per cent, less than that of Gujarat.
Coming to the cereals – which are the main source of nutrition in the absence of non-vegetarian food – the data show that Gujarat’s just eight per cent of the rural spending go into expenditure on cereals, as against the all-India average of 11 per cent. The situation is not very different for the urban areas, where just six per cent of the spending goes in for cereals, as against the all-India average of seven per cent.

In the absence of non-vegetarian food, on which Gujarat’s households just spend about Rs 24 per capita in rural areas and Rs 30 in urban areas (as against the all-India average of Rs 68 and 96 respectively), they are forced to spend a higher sum on milk and milk products – Rs 196 in rural areas (all-India average Rs 115) and Rs 267 in urban areas (all-India average Rs 184). As for fruits and vegetables, the spending is nearer to the all-India average.
Even more interesting is the fact that, NSSO data suggest, Gujarat’s rural as well as urban population is forced to spend a higher amount on cheaper cereals. To quote from the report, in the country as a whole, “rice and wheat together accounted for as much as 97 per cent of all cereal consumption in urban areas, and for 94 per cent in rural areas.”
To quote, “In rural India, the share of cereals other than rice and wheat was 3 per cent or less in all major States except Gujarat (32 per cent), Karnataka (27 per cent), Maharashtra (20 per cent), Rajasthan (19 per cent), and Madhya Pradesh (6 per cent). In urban India cereals other than rice and wheat accounted for 3 per cent or less of total cereal consumption in all but 3 major States – Karnataka (18 per cent), Gujarat (9 per cent) and Maharashtra (8 per cent).”

Comments

When democracy becomes a performance: The Tibetan exile experience

By Tseten Lhundup* I was born in Bylakuppe, one of the largest Tibetan settlements in southern India. From childhood, I grew up in simple barracks, along muddy roads, and in fields with limited resources. Over the years, I have watched our democratic system slowly erode. Observing the recent budget session of the 17th Tibetan Parliament-in-Exile, these “democratic procedures” appear grand and orderly on the surface, yet in reality they amount to little more than empty formalities. The parliamentarians seem largely disconnected from the everyday struggles faced by ordinary exiled Tibetans like us.

Study links sanctions to 500,000 deaths annually leading to rise in global backlash

By Bharat Dogra International opinion is increasingly turning against the expanding burden of sanctions imposed on a growing number of countries. These measures are contributing to humanitarian crises, intensifying domestic discord, and heightening international tensions, thereby increasing the risks of conflicts and wars.

Best left-handed cricket XI of all-time: Could it beat an all-time right-hander XI?

By Harsh Thakor* This is my all-time left-handers Test XI. It could arguably give an all-time right-handers XI a strong run for its money, boasting the likes of Garry Sobers, Brian Lara, Wasim Akram, and Adam Gilchrist.

Dhurandhar: The Revenge — Blurring the line between fiction and political narrative

By Mohd. Ziyaullah Khan* "Dhurandhar: The Revenge" does not wait to be remembered; it arrives almost on the heels of its predecessor, released on March 19, 2026, just months after the first film’s December 2025 debut. The speed of its arrival feels less like creative urgency and more like calculated timing—cinema responding not to storytelling rhythm but to the emotional climate of its audience. Director Aditya Dhar, along with actor Yami Gautam, appears acutely aware of this moment and how to harness it.

BJP accounts for 99% of political donations in Gujarat: Corporate giants dominate

By Jag Jivan An analysis of the official data on donations received by national parties from Gujarat during the Financial Year 2024-25 reveals a staggering concentration of funding, with the Bharatiya Janata Party (BJP) accounting for nearly the entirety of the contributions. The data, compiled in a document titled "National Parties donations received from Gujarat during FY-2024-25," lists thousands of transactions, painting a detailed picture of the financial backing for political parties from one of India’s most industrially significant states.

Alarming decline in India's repair culture threatens circular economy goals: Study

By Jag Jivan A comprehensive new study by environmental research and advocacy organisation Toxics Link has painted a worrying picture of India's fading repair culture, warning that the trend towards replacement over repair is accelerating the country's already critical e-waste crisis.

Beyond the island: Top mythologist reorients the geography of the Ramayana

By Jag Jivan In a compelling new analysis that challenges conventional geographical assumptions about the ancient epic, writer and mythologist Devdutt Pattanaik has traced the roots of the Ramayana to the forests and river systems of Central and Eastern India, rather than the peninsular south or the modern island nation of Sri Lanka.

The troubling turn in Telangana’s forest governance: Conservation without consent

By Palla Trinadha Rao The Government of Telangana has recently projected its relocation initiatives in tiger reserves as a model of “transformative conservation,” combining ecological restoration with improved livelihoods for tribal communities. In the Amrabad Tiger Reserve, the State has announced a rehabilitation package covering hundreds of tribal families, offering compensation or resettlement with land and housing. At first glance, such initiatives appear to align conservation with development. However, a closer examination of both law and ground realities reveals a deeply troubling pattern—one where constitutional safeguards, statutory mandates, and community rights are being systematically sidelined in the name of conservation.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Search This Blog