Indians Spend the Most on Medicines and Alcohol; Says Central Government Report
Medicines and Alcohol Emerge as Key Expenditure Areas
According to the latest government data, spending on both medicines and alcohol has been steadily rising since 2012. In 2024, this expenditure saw a significant spike—rising by 15.7% compared to just 7.2% the previous year. This dramatic increase signals a major shift in the spending patterns of Indian families.
Along with pharmaceuticals, considerable spending was also recorded on other health-related needs such as doctor consultations, diagnostic tests, pills, and medical devices. Experts suggest that a deeper analysis is needed to determine whether this uptick is purely due to growing health needs or influenced by other factors, including lifestyle changes and healthcare inflation.
Alcohol Spending at an All-Time High
Government statistics also reveal that alcohol consumption expenses are now on par with—or in some cases, exceeding—spending on medicines. Since 2012, alcohol-related spending has grown at an average annual rate of 0.5%. Notably, in 2024, expenditure on alcohol and tobacco rose significantly, while spending on essentials like clothing and footwear declined.
Hotel and Lifestyle Spending on the Rise
The data also points to increased spending on lifestyle services, including hotel stays, parties, and other leisure activities. Post-pandemic social behavior changes and increased mental stress have reportedly driven many people to seek social engagement, which in turn has elevated lifestyle-related expenses.
A Cause for Concern in Policy Circles?
This evolving expenditure pattern carries broader implications. The rising cost of healthcare suggests growing pressure on public health infrastructure, while increased alcohol consumption raises red flags from a public health and social wellbeing perspective. Additionally, the growing share of these expenses in the national GDP is a signal for policymakers to reconsider budget priorities and social planning strategies.
These findings are not just economic indicators—they offer a deeper insight into the changing fabric of Indian society, urging a more thoughtful and inclusive approach to future economic and social policies.