Footwear, clothing spendings plunge by 7% in FY24

Indian consumers' spending on 'footwear and clothing' has witnessed a significant drop in the past three years. According to the data by the National Accounts Data, the expenditure on clothing and footwear declined by 7% between FY2022 and FY2024. The consumption stood at Rs 4.94 trillion in FY22 compared to Rs 4.52 trillion in FY24.

The footwear consumption reduced from Rs 100,000 crore in FY21 to Rs 99,000 crore in FY24. However, the clothing consumption shrank from Rs 3.93 trillion in FY22 to Rs 3.53 trillion in the fiscal 2024.

The cut in spending is due to inflation and stagnation in wages, a report by Business Standard mentioned.

The impact of Covid-19 pandemic impacted clothing and footwear spending by 15% in 2020-21.

Last year, the ministry revealed that the Monthly Per Capita Consumption Expenditure (MPCE) in rural and urban India was estimated to be Rs 4,122 and Rs 6,996 in 2023-24, respectively.

Notably the monthly sending gap between urban and rural declined to 71% in 2022-23 from 84% in 2011-12.

The household consumption spending was more on non-food items in 2023-24 across the country. However, beverages and processed food remained key contributors in total consumption expenditure of food items in FY2024.