Abstract

This study investigates alterations in household consumption expenditure in Maharashtra at the commencement of the COVID-19 pandemic, concentrating on expenditures associated with food, health, and leisure. It analyses the influence of income, education, occupation, age, gender, and household size on expenditure decisions during an unparalleled economic disturbance.

The study employs secondary data from the Consumer Pyramid Household Survey (CPHS) conducted in March 2020, utilising multiple regression analysis to assess the socioeconomic determinants of expenditure patterns. Separate models for rural and urban households were created to explain how consumption patterns change depending on where you live.

The results show that income, education, and household composition have a big effect on food and leisure spending, while age and income are the main factors that affect health-related spending. The pandemic led to a distinct transition towards essential expenditures and a reduction in discretionary spending, illustrating how individuals alter their financial behaviours in times of economic uncertainty.

The study is limited to one state and uses secondary data from 2020, which makes it hard to get long-term insights. Nonetheless, the findings highlight the importance of income stabilisation, targeted welfare support, and comprehensive healthcare programs for a strong recovery.

This study offers one of the first district-level empirical evaluations of Maharashtra’s household expenditure during COVID-19, clarifying the interaction of demographic and economic factors that affect consumer resilience in times of crisis.

Keywords: Household expenditure, economic resilience, urban versus rural spending

Citation of this paper:

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