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The gutkha nation and the welfare state

21 Jan 2026
2 min

Household Consumption Expenditure Survey (HCES) 2023-24: Tobacco Consumption Insights

The HCES 2023-24 reveals a significant rise in tobacco consumption in India, particularly among poorer households, with serious implications for health outcomes and public health policies.

Tobacco Consumption Trends

  • Rural India
    • Per capita spending on tobacco increased by 58% between 2011-12 and 2023-24.
    • Households consuming tobacco rose from 9.9 crore (59.3%) to 13.3 crore (68.6%).
    • The surge is mainly due to increased usage of gutkha and leaf tobacco.
    • Rural gutkha use skyrocketed from 5.3% to 30.4% of households.
  • Urban India
    • Per capita spending on tobacco rose by 77% in the same period.
    • Households consuming tobacco increased from 2.8 crore (34.9%) to 4.7 crore (45.6%).
    • Cigarette consumption increased sharply, with 18.1% of households consuming them.
    • Gutkha usage also penetrated urban markets, with 16.8% of households consuming it.

Geographical and Demographic Patterns

  • Gutkha consumption is predominant in the central belt of India (e.g., Madhya Pradesh, Uttar Pradesh).
  • Higher prevalence of gutkha usage in the Northeast and southern states.
  • Poorer households are disproportionately affected, with over 70% of rural households in the bottom 40% income distribution consuming tobacco.

Health and Economic Implications

  • Tobacco is a leading cause of non-communicable diseases, contributing to 13 lakh deaths annually according to the Ministry of Health and Family Welfare.
  • Expanding public healthcare (e.g., Ayushman Bharat) is at risk due to rising tobacco-related health costs.
  • Government health expenditure increased from 29% to 48% of total health spending from FY2015 to FY2022.

Policy Recommendations and Challenges

  • Increasing duties on tobacco products alone is insufficient; more stringent regulatory oversight is necessary.
  • Surrogate advertising by celebrities needs to be curtailed.
  • Household budgets show that poorer rural households spend more on tobacco than on education, which poses a challenge to human capital development.

The data from HCES 2023-24 serves as a critical alarm for policymakers to address the rising tobacco consumption and its implications on health and fiscal sustainability.

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RELATED TERMS

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Fiscal sustainability

The ability of a government to meet its financial obligations over the long term without compromising its ability to provide essential public services. Rising healthcare costs due to factors like tobacco consumption can pose a challenge to fiscal sustainability.

Human capital development

The process of acquiring and improving the knowledge, skills, and health of a population that contribute to economic growth and development. Investing in education, healthcare, and nutrition are key components of human capital development.

Surrogate advertising

A form of advertising where a product that is prohibited or restricted from direct advertising (like tobacco or alcohol) is promoted indirectly through another, often related, product or service, typically with a similar brand name or logo.

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