India - Household final consumption expenditure, etc. (% of GDP)

Household final consumption expenditure, etc. (% of GDP) in India was 59.43 as of 2016. Its highest value over the past 56 years was 79.77 in 1960, while its lowest value was 51.65 in 2007.

Definition: Household final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. Here, household consumption expenditure includes the expenditures of nonprofit institutions serving households, even when reported separately by the country. This item also includes any statistical discrepancy in the use of resources relative to the supply of resources.

Source: World Bank national accounts data, and OECD National Accounts data files.

See also:

Year Value
1960 79.77
1961 79.64
1962 77.27
1963 76.82
1964 77.64
1965 74.85
1966 75.27
1967 77.71
1968 77.75
1969 75.27
1970 74.07
1971 72.60
1972 73.78
1973 72.61
1974 72.86
1975 72.09
1976 70.01
1977 70.58
1978 67.06
1979 68.58
1980 71.91
1981 71.71
1982 70.51
1983 71.40
1984 69.55
1985 68.28
1986 67.66
1987 64.82
1988 64.11
1989 62.90
1990 60.86
1991 64.37
1992 63.92
1993 64.00
1994 62.08
1995 62.25
1996 64.22
1997 61.48
1998 62.53
1999 59.80
2000 61.66
2001 61.84
2002 61.84
2003 59.68
2004 54.60
2005 53.63
2006 53.47
2007 51.65
2008 56.36
2009 53.30
2010 52.69
2011 55.87
2012 57.69
2013 58.66
2014 57.99
2015 59.09
2016 59.43

Limitations and Exceptions: Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total. Household final consumption expenditure is often estimated as a residual, by subtracting all other known expenditures from GDP. The resulting aggregate may incorporate fairly large discrepancies. When household consumption is calculated separately, many of the estimates are based on household surveys, which tend to be one-year studies with limited coverage. Thus the estimates quickly become outdated and must be supplemented by estimates using price- and quantity-based statistical procedures. Complicating the issue, in many developing countries the distinction between cash outlays for personal business and those for household use may be blurred. Informal economic activities pose a particular measurement problem, especially in developing countries, where much economic activity is unrecorded. A complete picture of the economy requires estimating household outputs produced for home use, sales in informal markets, barter exchanges, and illicit or deliberately unreported activities. The consistency and completeness of such estimates depend on the skill and methods of the compiling statisticians.

Statistical Concept and Methodology: Gross domestic product (GDP) from the expenditure side is made up of household final consumption expenditure, general government final consumption expenditure, gross capital formation (private and public investment in fixed assets, changes in inventories, and net acquisitions of valuables), and net exports (exports minus imports) of goods and services. Such expenditures are recorded in purchaser prices and include net taxes on products.

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts