The Union Ministry of Statistics and Programme Implementation has released the Household Consumption Expenditure Survey (HCES) 2023-24. The survey provides crucial insights into consumption patterns in rural and urban India.
Key Findings:
- Average Monthly Per Capita Expenditure (MPCE):
- Without imputation for free items (through various social welfare programmes):
- Rural: ₹4,122
- Urban: ₹6,996
- With imputation for free items:
- Rural: ₹4,247
- Urban: ₹7,078
- Without imputation for free items (through various social welfare programmes):
- Growth in MPCE:
- Nominal MPCE (without imputation) increased by:
- 9% in rural areas
- 8% in urban areas compared to 2022-23.
- Nominal MPCE (without imputation) increased by:
- Urban-Rural Gap:
- Declined from 84% in 2011-12 to 71% in 2022-23, and further reduced to 70% in 2023-24.
- Indicates sustained consumption growth in rural areas, narrowing the disparity.
- Composition of Expenditure:
- Non-food items dominate household spending:
- Rural areas: 53% of MPCE.
- Urban areas: 60% of MPCE.
- Non-food items dominate household spending:
Implications:
- Consumption Trends: The steady growth in rural MPCE highlights the impact of increasing incomes and enhanced social welfare measures in rural areas.
- Social Welfare Contribution: Inclusion of imputed values for free items underlines the significant role of government programs in supporting household consumption.
- Urban-Rural Dynamics: The narrowing urban-rural consumption gap points to a positive shift in reducing regional economic disparities.
- Focus on Non-Food Expenditure: The dominance of non-food expenditure reflects changing lifestyles and priorities, especially in urban settings.
