Economy

Indians spend most on public transport, communication

More than 60% of rural and urban families use bus as their main mode of public transportation, shows the NSSO survey of expenditure on durable goods and services

 
By Jitendra
Last Updated: Thursday 30 June 2016 | 11:54:21 AM
More than 60 per cent of rural and urban households use the bus/tram as their main mode of public transportation (Photo: Meeta Ahlawat)
More than 60 per cent of rural and urban households use the bus/tram as their main mode of public transportation (Photo: Meeta Ahlawat) More than 60 per cent of rural and urban households use the bus/tram as their main mode of public transportation (Photo: Meeta Ahlawat)

A new study released by National Sample Survey Office (NSSO) shows that both rural and urban India depends on public transport, spending 90 per cent of their total transportation expenditure on buses, trains, auto rickshaws and taxis.

The share of expenditure on trains is less than that on other modes of transportation. While rural India spends only 4.4 per cent of their total transportation expenditure on railways, urban India spends around 13 per cent.

More than 60 per cent of rural and urban households use the bus/tram as their main mode of public transportation, followed by auto rickshaw, taxi, railways and cycle rickshaw. Around half of urban India and 38 per cent of rural India use the auto rickshaw. The study reveals that monthly per capita expenditure on transport in urban areas is more than double than that in rural areas.

This data was collected in the 72nd round of NSSO. The report, called “Key Indicators of Household Expenditure on Services and Durable Goods”, was released on June 29.

Expenditure on services

Urban India spends three times more on communication services than rural India in absolute terms. In terms of share of expenditure, both rural and urban areas spend the highest on these services. Rural households spend 25 per cent of their total expenditure on communication services, while urban households spend 26 per cent.

The study also reveals that more than 90 per cent of households in both rural and urban areas report expenditure on barber, beauty shop and communication services. Rural India spends 11 per cent of its total expenditure on barbers and beauty shops whereas urban India spends 9 per cent.

Nearly half of rural households and more than three quarters of urban households spend on TV and radio services.

An almost equal proportion of rural and urban households spend on religious services. In terms of share of expenditure, rural households spend 9 per cent and urban households spend 6 per cent.

Expenditure on durable goods

The study defines durable goods as transport equipment, heating, cooling and electricity generation devices, kitchen equipment, equipment for recreation, crockery and utensils, furniture and fixtures, other machines for household work, IT and communication devices, electrical and lighting accessories, productive equipment, sports and medical equipment, miscellaneous durables and jewelry and ornaments.

Both rural and urban households spend significantly more on domestic use of durable goods than their enterprise use.

Of all the money spent on durable goods, rural India spends 83 per cent on transport-related items.

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