Driven by increasing purchasing power, Karnataka, Andhra Pradesh, Kerala, Rajasthan, Tamil Nadu and Gujarat have registered a phenomenal growth in consumption of consumer durable goods in rural areas.

A study by Assocham has noted that the overall trend in rural areas during 2007-08 and 2011-12 was actually higher than that in the cities.

The top five States that registered a phenomenal growth rate in rural consumption expenditure of durable goods were Karnataka at 59.5 per cent, Andhra Pradesh at 44.3 per cent, Rajasthan at 40.7 per cent, Kerala at 40.4 per cent, and Gujarat at 37 per cent, during the period under review.

As per the CSO data, most of the States witnessed double digit growth in consumer durable goods expenditure during 2007-08 to 2011-12.

Other States that recorded a robust growth rate of rural consumption expenditure on consumer durable goods were Tamil Nadu at 33.3 per cent, Madhya Pradesh at 27.2 per cent, Maharashtra at 25.2 per cent, Bihar at 25 per cent, Haryana at 23.9 per cent and Punjab at 22.7 per cent, according to the Assocham study.

The States that have registered lower than all-India rural consumption expenditure growth were West Bengal at 15.7 per cent, Uttar Pradesh at 14.6 per cent, Assam at 13.3 per cent, and Odisha at 1.4 per cent.

“The study further suggests that as the income level of rural people increases, consumption expenditure on consumer durable also goes up, reflecting aspirations for a better life in the countryside. There also appears to be a positive nexus between consumer durable goods consumption expenditure and availability of basic infrastructure in rural areas, such as electricity etc,”' said the Assocham report.

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