Urban-Rural and Poor-Rich divider


Patterns of spending changes constantly in both rural and urban area. According to National Sample Survey Organisation (NSSO), food no longer dominates the expenditure head. Now, combining the healthcare and transport makes up for the majority of the share of rural expenditure. Rural areas spend (64 percent) more than urban areas (54 percent) on food products by 10 percent according to the NSSO report which goes 3 decades back. However, in the recent report, non-food products went past the expenditure spent on food. On the other hand, the people who are poor have to spend their money as 17 rupees per day whereas the people living in the city have to spend only around 23 rupees per day.

Indian consumers spending is going past 30 percent than what it was in past 2 years. The gap between the rich people and the poor people is going on to be widened. Now, of urban India spends around 6 percent of its budget of expenditure on education whereas the rural India spends only 3 percent of its budget of expenditure.

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