Impacts of the COVID Lockdown on Consumption: Household Data from India (original) (raw)
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Impacts of the COVID-19 Lockdown on Consumption Household Data from India
Asian Development Review
We quantify the impacts on consumption expenditure and the patterns following India's initial sudden lockdown in response to the coronavirus disease pandemic and the gradual relaxation that followed. We use household survey data from a representative Indian state, Punjab. We separate the effects between rural versus urban households, and whether households were female headed or had daily laborers. While the urban population cut back expenditure across all categories, rural households shifted toward basic commodities and cut back more on other expenditure. Rural households that included daily-wage laborers were most severely affected.
Impact of COVID-19 on Indian Household Consumption Patterns
EPRA International Journal of Economics, Business and Management Studies
In order to slow down the spread of COVID-19, the Indian government imposed a nationwide lockdown in various phases from March 25, 2020. As a result of the lockdown, many people lost their jobs and thus their income. The study is important to find the actual reason for household consumption patterns and how covid 19 impacted it. What were the main reason for such a consumption pattern and how has it impacted the economy in the whole. It was discovered that epidemics and pandemics significantly affect India’s consumption patterns. The study finds that during the early phases of epidemics and pandemics, consumers turned to panicked buying. Consumer buying patterns were discovered to have drastically changed, and they were now focusing almost exclusively on necessities. KEYWORDS: Covid-19, Consumption Patterns, Household.
Impacts of the COVID lockdown on household incomes: evidence from Punjab, India
Empirical Economics
In response to the beginnings of the COVID-19 pandemic, India’s government instituted a severe nationwide lockdown in late March 2020. In this paper, we analyze household survey data on income from an Indian state, Punjab. We analyze the impacts of the pandemic and lockdown on total household income, as well as its components, including wages, business income and transfers. This paper innovates in this area by using Poisson Pseudo Maximum Likelihood estimation to deal with the skewed distributions of various income components, as well as quantile regressions to examine differential impacts across the income distribution. We examine the differences between rural and urban households, differential impacts on female-headed and laborer households, and the time pattern of impacts. We find that rural households experienced more persistent income declines than urban households, and their wages suffered relatively more. Households with daily laborers were most badly affected, and this was e...
COVID19, Consumption and Inequality: A Systematic Analysis of Rural Population of India
2021
COVID19 pandemic has impacted consumption levels and inequality within India. Government policy interventions have targeted poor households for cash and food transfers. It is important, however, to study the impact of the pandemic on consumption levels of non-poor in India, and in particular the middle class. In this paper, we aim to quantify the changes in consumption levels and inequality over time, across all groups of rural households in India. We analyse three rounds of COVID 19-related shock surveys between May and September 2020. These surveys cover rural households of six large states in India and are representative of more than 442 million (52% of rural population of India). In the early phase of the pandemic, it was the bottom 40% of households that experienced the most severe decline in consumption. But as the pandemic deepened, consumption declined across all classes of households. Besides the poorest, it was particularly severe for the middle class (defined as 40%-80%)....
INCOME CONSUMPTION RELATIONSHIP OF FOOD AND NON-FOOD EXPENDITURE IN MARCH 2020-AN EVIDENCE FROM PUNE
international journal of culture and social sciences, 2024
This article utilizes data from a representative household survey conducted in Pune District, Maharashtra, in March 2021, by the CPHS to investigate shifts in household consumption expenditure following the initial wave of the COVID-19 pandemic. The study reveals a notable decrease in overall expenditures for both rural and urban households, particularly in categories such as food and non-food items (healthcare, restaurants, vacations, and recreation). These findings align with existing literature on food insecurity during the initial lockdown in India (March-April 2020) and present the first estimates of changes in health expenditure during this period. Due to the fact that the economic activities were largely affected due to the lockdowns imposed by the government, income levels also fell significantly. The study has classified Pune district of Maharashtra into rural and urban areas.The findings illustrate a decrease in food expenditure in both rural and urban areas, while non-food expenditure appear to be elevated in both regions of the Pune district, Maharashtra. Findings reveal that consumption of food and non-food expenditures are associated with shifts in the total adjusted income during the period of study in both the rural and urban areas of Pune district, Maharashtra.
This paper provides a comprehensive review of the existing literature on the impact of socioeconomic factors on household consumption patterns, particularly in the context of the covid-19 pandemic. Drawing from a diverse range of studies, the review examines how variables such as income, gender, family size, education, and occupation influence spending on essential categories like food and health, as well as discretionary non-food items including recreation, dining out, and vacations. The literature reveals that income and household size are consistently significant determinants of consumption, with marked variations between rural and urban areas. Studies also highlight the pandemic's role in altering consumption priorities, with increased spending on health and food, and reduced expenditure on non-essentials. This review synthesizes key findings and identifies gaps in the literature, emphasizing the need for further research into post-pandemic consumption behavior, particularly in developing regions like maharashtra, india. The findings offer critical insights for policymakers aiming to address consumption disparities and enhance household resilience in times of crisis.
Impact of COVID-19 on Select Private Consumption Demand in Urban India: A Primary Survey Findings
The Indian Economic Journal
The paper focusses on one of the aspects of the Covid-19 induced economic crisis in India .i.e., the consumption demand for non-essential commodities which is an important component of the overall aggregate demand. As the number of Covid-19 positive cases are swelling up and lockdown is being phased out, this study, based on the primary survey of 900 plus individuals across various states, age, income and occupation groups in urban areas, has attempted to ascertain the consumer sentiment so as to predict the changes in private consumer spending during the current financial year on various items once the lockdown is completely lifted. These items include those that were ‘planned’ for during the year (for instance, electronics, real estate, automobiles, domestic travel) as well as ‘discretionary’ spending on retail and e-commerce, wellness and hospitality services. The survey responses have been used to determine the timeframe of recovery for each sector through econometric analysis o...
Impact of COVID-19 Pandemic on Households in West Bengal: A Study in Hooghly District
Scholars Journal of Arts, Humanities and Social Sciences, 2022
COVID-19 has caused economic shock across the world for taking lockdown. Currently, India has facing a negative GDP growth rate. The economy of West Bengal has been affected a lot because of the strict implantation of lockdowns and also faces natural disasters. Unemployment went up to nearly 24 percent and 18 percent in India and West Bengal respectively in April 2020. The paper aims to investigate the impact of covid-19 pandemic on households’ income, consumption and savings. We have conducted a primary survey on 100 households in a small village in the Hooghly district in West Bengal, India, during the month of October 2020. The study reveals that both income and consumption of households has decreased but income decreased more than the consumption expenditure. The study also found overall consumption expenditure decreased but food expenditure increased, that’s why people have broken their savings for maintaining food expenditure during this situation.
Income and Employment Changes Under COVID-19 Lockdown: A Study of Urban Punjab
Millennial Asia, 2020
This article traces income and employment changes through various phases of the lockdown based on primary data. It analyses the coping strategies of people in response to fall in their income. The article reveals that there was a large drop in income and employment with the announcement of lockdown. While there is some recovery with easing of the lockdown, the income at the time of survey is still substantially lower than its pre-lockdown level. Casual labour households with the largest fall in income and employment are the most affected. Income and employment losses are also higher among Scheduled Caste (SC) and Other Backward Caste (OBC) households. In the absence of any income, the households either had to live off their savings or had to borrow money for their basic needs. With rapidly depleting savings, borrowing approached its limits, and with slow recovery of income, households may need substantial government assistance to save them from deprivation.