Government Data Reveals Consumption Expenditure More Than Doubled In 13 Years

PIB's research unit reveals that in 2023-24, Sikkim recorded the highest Monthly Per Capita Expenditure (MPCE) with Rs 13,927 in urban areas.

New Delhi: According to government data, spending in both rural and urban parts of the country has more than doubled between 2011-12 and 2023-24. The Press Information Bureau's research unit reveals these data, which indicate that in 2023-24, the highest Monthly Per Capita Expenditure (MPCE) was recorded in Sikkim, with Rs 13,927 in urban areas, while the lowest was observed in Chhattisgarh at Rs 2,739.

The Ministry of Statistics & Programme Implementation (MoSPI) conducted the Household Consumption Expenditure Survey (HCES), which aims to capture detailed data on household consumption and expenditure patterns in the country. The Government believes that this survey is essential for analyzing living standards and well-being across India. The HCES 2023-24 findings highlight a rising MPEC, a narrowing of the rural-urban gap, and a decline in consumption inequality. These findings suggest a trajectory of improving living standards and economic inclusivity.

According to MoSPI, this survey captures data on household consumption of goods and services, reflecting living standards and well-being. The survey also facilitates the development of weighting diagrams for the Consumer Price Indices, which are crucial for economic analyses. In addition, it provides a basis for revising the base year for macroeconomic indicators such as GDP and CPI.

Survey Sample

According to the report, the average estimated MPCE in 2023-24 is observed to be Rs 4,122 in rural India and Rs 6,996 in urban India. The estimates of MPCE for 2023-24 are based on data collected from 2,61,953 households (1,54,357 in rural areas and 1,07,596 in urban areas) in the central sample, spread across all States and Union Territories in the country.

Household Spending

Rural households spent 47.04% (Rs 1,939) on food items, while urban households allocated 39.68% (Rs 2,776) to food. Non-food expenditure accounted for 52.96% (Rs 2,183) in rural areas and 60.32% (Rs 4,220) in urban areas.

Reports show that the average MPEC in rural areas increased from Rs 1,430 in 2011-12 to Rs 3,773 in 2022-23, and further to Rs 4,122 in 2023-24. In urban areas, the MPCE grew from Rs 2,630 in 2011-12 to Rs 6,459 in 2022-23, and then to Rs 6,996 in 2023-24. Notably, the gap between urban and rural MPCE, when expressed as a percentage of rural MPCE, has been narrowing over time.

Sikkim on Top

In 2023-24, Sikkim recorded the highest MPCE, with Rs 9,377 in rural areas and Rs 13,927 in urban areas. In contrast, Chhattisgarh had the lowest MPCE, with rural areas reporting Rs 2,739 and urban areas Rs 4,927. The level of consumption inequality has decreased, with the measure dropping from 0.283 and 0.363 in 2011-12 (in rural and urban areas, respectively) to 0.266 and 0.314 in 2022-23. It further declined to 0.237 and 0.284 in 2023-24.

The Government believes that the HCES 2023-24 is an essential tool for understanding India’s socio-economic landscape, providing policymakers with data-driven insights to promote inclusive development. This extensive survey underscores the positive impact of policy efforts designed to foster equitable growth and improve household well-being. As India continues to move forward, the findings from HCES 2023-24 will play a crucial role in shaping evidence-based policies, ensuring that the benefits of development reach every part of the country.