Spending on gutkha and tobacco products in rural India exceeds spending on education

Data revealed through a government survey

New Delhi – A government survey has revealed that rural India spends more money on gutkha and tobacco products than on education. According to the Household Consumption and Expenditure Survey, rural households spend only 2.5% of their total expenditure on education, while as much as 4% is spent on tobacco products, particularly gutkha.

1. Sharp rise in per capita tobacco spending

Between 2011–12 and 2023–24, per capita expenditure on tobacco in rural areas increased by 58%, while in urban areas it rose by 77%. At present, about 1.5% of monthly per capita expenditure in rural areas and 1% in urban areas is spent on tobacco.

2. Rapid increase in tobacco-consuming households

In 2011–12, the number of rural households consuming tobacco stood at 9 crore (59.3%). By 2023–24, this figure had risen to 13.3 crore (68.6%)—an increase of 33% in just over a decade.

The rise has been even sharper in urban areas, where tobacco-consuming households increased from 2.8 crore to 4.7 crore. Consequently, the share of such households in cities rose from 34.9% to 45.6%.

3. Gutkha dominates tobacco consumption in rural India

Currently, 41% of total tobacco-related expenditure in rural areas is on gutkha, making it the most widely consumed tobacco product. While cigarettes remain the most commonly used tobacco product in urban areas, the survey notes that 16.8% of urban households consume gutkha.