MUMBAI - Indians are spending less on food, particularly staples like rice and wheat, and more on discretionary items such as processed food, as well as durables like televisions and fridges, government consumption data showed.

The Household Consumption Expenditure Survey, released late on Feb 24, estimates average rural consumer spending rose to 3,773 rupees (S$60) a month per person for the 12 months through July from 1,430 rupees in the previous survey in 2011 to 2012, while urban spending rose to 6,459 rupees from 2,630 rupees.

Prime Minister Narendra Modi’s government did not release a 2017 to 2018 survey due to what it called “data quality issues”. The decision prompted controversy over whether the administration was concealing economic data.

The government denied suggestions it was withholding the data because it showed weak consumption trends.

The new survey will form the basis of a review of India’s consumer price inflation index.

Spending on food fell to 46 per cent of monthly consumption for rural consumers from nearly 53 per cent in 2011 to 2012, while in urban areas it fell to 39 per cent from 43 per cent.

Indians are spending less on cereals, including wheat and rice, and pulses, but more on beverages, refreshments and processed food.

Among non-food items, consumers are spending more on conveyance, consumer services and durable goods, like televisions and fridges. The results come before India goes to the polls in an election to be held by May, with Mr Modi seeking a rare third term.

While the Indian economy is forecast to grow at a world-beating 7.3 per cent in the fiscal year that started in April and 7 per cent next fiscal year, large parts of the population living in rural areas face stagnant incomes and high inflation. REUTERS