The average monthly consumption expenditure of households in both urban and rural India has increased further in 2022-23 from 2023-24 and the trend of higher spending on non-food items continues. However, there continues to be a sharp gap between the average consumption expenditure of the top 5% and the bottom 5% in both urban and rural India, as well as between the average expenditure in the top 5% of urban and rural India.
Average monthly per capita consumption expenditure (MPCE) in rural and urban India in 2023-24 is estimated at Rs. 4,122 and Rs. 6,996, without taking into account the value of goods received free by the households through various social welfare programmes.
This was an increase of around 9% in rural areas and 8% in urban areas from the 2022-23 level of Rs 3,773 and Rs 6,459 respectively.
Considering the imputed values of free goods through various social welfare programmes, these estimates come to Rs 4,247 and Rs 7,078 for rural and urban areas respectively.
“In line with the trend observed in HCES:2022-23, non-food items are a major contributor to the average monthly household expenditure in 2023-24 with a share of 53% and 60% of MPCE in rural and urban areas respectively. Ministry of Statistics and Program Implementation Official An announcement.
This is the second round of the Household Consumption Expenditure Survey in recent years and was conducted between August 2023 and July 2024. Prior to this, HCES 2022-23 was conducted between August 2022 and July 2023. Hope the data helps. The government updates the basket of consumer price index used to measure retail inflation in the country. It also gives policy makers and companies a sense of the consumption patterns of households and their income levels.
“The survey provides data needed to assess trends in economic well-being and to determine and update the weights used to calculate the basket of consumer goods and services and the Consumer Price Index. Data collected in the HCES is also used to measure poverty, inequality and social exclusion.
Major expenditure items:
Major contributors to non-food expenditure of households in 2023-24 were transport, clothing, bedding and footwear, miscellaneous goods and entertainment and durable goods. “Rent, with a share of about 7%, is another major component of non-food expenditure in households in urban India,” the data points out.
Food items, beverages and processed food will continue to be the major contributor to total consumption expenditure on food items in 2023-24, followed by milk and milk products and vegetables. Households in both urban and rural India will spend marginally more on beverages and processed foods, vegetables and fruits, eggs, meat and fish and animal proteins during 2022-23 to 2023-24.
Cost sharing:
The data revealed that the bottom 5% of India's rural population, as ranked by MPCE, had an average MPCE of Rs 1,677, a 22% increase from 2022-23 when the MPCE for this segment was Rs 1,373. The MPCE for the bottom 5% of the urban population has increased to Rs 2,376 in 2023-24, a 19% increase from Rs 2,001 in 2022-23.
The gap between the monthly expenditure of the top 5% of urban households is nearly double that of the top 5% of rural households. The average MPCE of the top 5% of India's rural and urban population as ranked by MPCE is Rs.10,137 and Rs. 20,310, respectively.
The urban-rural gap in MPCE has reduced from 84% in 2011-12 to 71% in 2022-23, further down to 70% in 2023-24, confirming sustained momentum in consumption growth, the release said. . Rural areas.
It added that consumption inequality in rural and urban areas has come down to the 2022-23 level. The Gini coefficient has decreased from 0.266 in 2022-23 to 0.237 in 2023-24 for rural areas and from 0.314 in 2022-23 to 0.284 in 2023-24 for urban areas.