Rising food prices, stagnant incomes: Gujarat slips to 20th in Human Development Index

Over the past year, food prices have risen sharply, disrupting the financial stability of poor and middle-class families. In contrast, incomes have not kept pace with this inflationary surge. 

Gujarat has ranked 20th among Indian states in the latest Human Development Index (HDI) — a concerning indicator of the state’s overall progress.

Middle-class households spend 35–45% of their income on food, while for poorer families, this share climbs to 40–70%. 

Price comparison of grocery and vegetables

Although low-income families receive five kilograms of wheat free of cost and can purchase other essentials at subsidised rates through ration shops, the lower middle class — with limited earnings — struggles to maintain balance when food prices rise even slightly.

Consequently, many lower-middle-class families are forced to trim their “thalinomics” (a concept that analyses the economics of a plate of food, or ‘thali’, to track the affordability of a basic meal for the average person cutting back on food expenses) which directly affects the quality of nutrition, said former minister Jaynarayan Vyas.

He further explained that middle-class families typically spend 30–50% of their monthly income on food. Though they have relatively better financial capacity and savings than the lower middle class, these funds are often earmarked for education, healthcare, and recreation. Rising prices are now squeezing these budgets, putting pressure on children’s education, family health, and leisure activities.

According to the latest United Nations Development Programme (UNDP) report, India ranks 130th globally on the Human Development Index, while Gujarat’s position at 20th nationally underscores the state’s growing developmental challenges.