The present study is composed to investigate the Consumer Expenditure Behaviour in India. The data used in this study were collected from the period of 1987 to 2002. The regression analysis technique is used to identify the relationship between household income and household consumption expenditure in India. The model for the study was estimated using the ordinary least square (OLS) technique. Compound Average growth Rates (CAGRs) were estimated by fitting an exponential function. Finding of research reveal that during 1987-2002 in both rural and urban Indian household percentage share of food expenditure has decreased, on the other hand non food expenditure has increased in both rural and urban India. The compound growth rate of food expenditure was observed higher in the urban India rather than rural. The compound rate of growth of non food expenditure showed higher in rural India than urban India. The regression result showed that there was positive relation between Household income and consumption expenditure in rural part of India.