SUBMITTED TO

DR. HARENDAR
KUMAR

7/25/12

BY

SANJAY KUMAR ( 2K11A25)

SHACHI AHUJA ( 2K11A27)

SHIKHA ATTREY ( 2K11A28)

SHUBHRAJIT MUKHERJEE ( 2K11A29)

SIDHARTH RAJ ( 2K11A30)

SMITA KUMARI ( 2K11A31)

Private
Consumption
v

Private consumption is defined as the value of the

consumption goods and services acquired and
consumed by households. The totals correspond to
personal consumption expenditure with several
possible adjustments.

Private consumption is a measure of price changes in

consumer goods and services.Personal consumption
expendituresconsist of the actual and imputed
expenditures of households; the measureincludes
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data pertaining to durables, non-durables and services.

A comparative study

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Private Consumption at
Year
Consumption
Year
Current
Prices
1950-51
526
1978-79
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64
1964-65
1965-66
1966-67
1967-68
1968-69
1969-70
1970-71
1971-72
1972-73
1973-74
1974-75
1975-76
1976-77

591
634
647
677
481
546
621
685
765
847
945
1046
1049
1205
1404
1652
1896
1935
2218
2562
2919
3348
4059
5276
6080
6554

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1977-78

7231

1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05

Consumption
8200
10013
11736
14085
16305
18533
21397
25295
28935
32979
38634
45567
51078
61971
72129
80882
93822
111126
128391
143749
162202
181421
201817
228298
250477
280048
329041

From 1951-2005
Consumption
20000

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Pre Liberalization
Consumption
12

10

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Post Liberalization
Consumption
12

10

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AVERAGE MONTHLY PER CAPITA

EXPENDITURE
(RS. PER MONTH AT CURRENT PRICES

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10

12

Private Consumption at
Year
Consumption
Year
Constant
Prices
1950-51
18975
1978-79
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64
1964-65
1965-66
1966-67
1967-68
1968-69
1969-70
1970-71
1971-72
1972-73
1973-74
1974-75
1975-76
1976-77

19810
20552
21299
22144
13693
14900
16099
17185
18417
19328
20604
21928
21183
22907
24723
26656
28785
28115
30397
32534
34756
37141
39498
41862
44093
46665

1977-78

49548

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1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05

Consumption
52421
55224
58371
61478
64899
68432
72365
76491
80811
85730
90990
96868
99921
106140
112597
119648
127366
136598
146130
156218
167375
181421
193852
208469
223652
241441
262499

From 1951-2005
Consumption of Fixed Capital
12

10

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Pre Liberalization
Consumption of Fixed Capital
12

10

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Post Liberalization
Consumption of Fixed Capital
12

10

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PRIVATE CONSUMPTION ACCORDING TO

DIFFERENT FOOD CATEGORIES

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India is a long-term consumption-driven economy, as its population is one billion-plus and the
bulk of it is, as noted, now entering the working-age group.

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Recent trends
Consumption growth has been accelerating in
recent years, especially since the third quarter
of FY2007-08.
Investment and consumption growth vs GDP
growth, FY2003-08 (per cent

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09 show a drop in overall private consumption

growth to 5 per cent year on year from 8 per cent
in the preceding quarter. However, consumption
trends have been relatively stable in comparison
with investment growth, which has been trending
lower for the past two years.

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Forecasting of private
consumption in india

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CONCLUSION :
Indias rapid economic growth has set the stage for
fundamental change among the countrys
consumers.
v A new study by the McKinsey Global Institute (MGI)
suggests that if India continues its recent growth,
average household incomes will triple over the next
two decades and it will become the worlds 5thlargest consumer
by 2025.
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v Along the way, spending patterns will shift
significantly as discretionary purchases capture a
majority of consumer spending.
v Private consumption has already played a much
larger role in Indias growth than it has in that of
other developing countries. In 2005 private
spending reached about 17 trillion Indian rupees
($372 billion), accounting for more than 60 percent
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of Indias
v

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