Odisha is witnessing a structural transformation in household prosperity, with consumption spending rising over threefold in the past decade and signalling the emergence of a new consuming class across both rural and urban regions.
Monthly Per Capita Consumption Expenditure in the state increased from ₹1,142 in 2011-12 to ₹3,759 in 2023-24, reflecting a compound annual growth rate of 10.4 per cent. Rural consumption grew faster than urban, rising from ₹1,003 to ₹3,357 at a CAGR of 10.6 per cent, exceeding the national rural growth rate of 9.2 per cent. Urban MPCE increased from ₹1,941 to ₹5,825, growing at 9.6 per cent annually, also higher than the national urban growth rate of 8.5 per cent.
The faster rise in rural consumption has helped narrow the urban-rural spending gap, with the urban to rural MPCE ratio declining from 1.94 in 2011-12 to 1.74 in 2023-24. This indicates improving income distribution and stronger economic momentum beyond urban centres.
Rising incomes have fundamentally altered spending patterns in Odisha, with households allocating a greater share toward non-food items. The share of non-food expenditure increased from 42.8 per cent to 51.5 per cent in rural areas and from 54.6 per cent to 59.3 per cent in urban areas, while food expenditure share declined correspondingly, reflecting improving purchasing power and economic security.
Within food spending, households are shifting toward higher-value and nutrient-rich diets. The share of cereals has declined sharply, while combined spending on fruits, milk, eggs, fish, and meat rose to 25.6 per cent in rural areas and 27.2 per cent in urban areas. Expenditure on chicken recorded the fastest growth among livestock products, reflecting improving dietary quality and rising incomes.
Higher consumption is also visible in lifestyle spending and asset ownership. Expenditure on personal care, entertainment, and consumer services rose to 15.8 per cent of rural consumption and 16.8 per cent in urban areas. Ownership of consumer durables has increased sharply, with two-wheeler ownership in rural Odisha rising from 11.9 per cent to 44.4 per cent, alongside growth in ownership of refrigerators, air conditioners, and other appliances.
Households are also allocating more spending toward essential services, particularly healthcare and education. Total spending on high-value services reached around ₹60,000 crore in 2023-24, with healthcare accounting for nearly 67 per cent of the total, highlighting rising affordability and greater focus on wellbeing and human capital.
The sustained rise in consumption reflects deeper structural strengthening of household finances in Odisha and reinforces the state’s ongoing economic transformation. Rising consumption not only reflects improving standards of living but also strengthens domestic demand, positioning household spending as a key driver of Odisha’s future economic growth.