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International Year of Cooperatives Press Information Bureau
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Ministry of Statistics & Programme Implementation

Household Consumption Trends

Posted On: 07 JAN 2025 17:14 PM

A Window into India's Living Standards

 

The Household Consumption Expenditure Survey (HCES) aims to capture detailed data on household consumption and expenditure patterns, essential for analysing living standards and well-being across India. With rising Monthly Per Capita Consumption Expenditure (MPCE), narrowing rural-urban gaps, and declining consumption inequality, the HCES 2023-24 findings highlight a trajectory of improving living standards and economic inclusivity.

 

Key Objectives of HCES

  1. Consumption Patterns: Captures data on household consumption of goods and services, reflecting living standards and well-being.
  2. Consumer Price Indices: Facilitates the development of weighting diagrams for Consumer Price Indices (CPI), crucial for economic analyses.
  3. Economic Indicators: Provides a basis for revising the base year for macroeconomic indicators such as GDP and CPI.

 

Highlights of Findings

The key findings of the report include:

  1. Monthly Per Capita Consumption Expenditure (MPCE):
    1. 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 of 2023-24 are based on the 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 over all States and Union Territories in the country.

  1. Expenditure Composition:
    1. Rural households spent 47.04% on food items, while urban households allocated 39.68% to food.
    2. Non-food expenditure accounted for 52.96% in rural areas and 60.32% in urban areas.

 

  1. Trends in Consumption:
  1. Rural MPCE increased from ₹1,430 in 2011-12 to ₹3,773 in 2022-23 and further to ₹4,122 in 2023-24.
  2. Urban MPCE rose from ₹2,630 in 2011-12 to ₹6,459 in 2022-23 and then to ₹6,996 in 2023-24.
  3. The difference between urban and rural MPCE, expressed as a percentage of rural MPCE, has decreased over time:
    • 83.9% in 2011-12.
    • 71.2% in 2022-23.
    • 69.7% in 2023-24.

 

 

  1. MPCE in 2023-24 for all State & UTs      
  1. In 2023-24, the highest Monthly Per Capita Expenditure (MPCE) was recorded in Sikkim, with ₹9,377 in rural areas and ₹13,927 in urban areas. On the other hand, the lowest MPCE was observed in Chhattisgarh, where rural areas reported ₹2,739 and urban areas reported ₹4,927.

 

  1. Consumption Inequality:
  1. The consumption inequality has declined to 0.266 and 0.314 in 2022-23 from 0.283 and 0.363 in 2011-12, respectively in rural and urban India. It has further come down to 0.237 and 0.284 in 2023-24, respectively in rural and urban India.

 

 

The HCES 2023-24 is a critical resource for understanding India's socio-economic dynamics, empowering policymakers with data-driven insights to foster inclusive development. This comprehensive survey reaffirms the transformative impact of policy initiatives aimed at fostering equitable growth and enhancing household well-being. As India continues to progress, insights from the HCES 2023-24 will serve as a cornerstone for evidence-based policymaking, ensuring that the benefits of development reach every corner of the nation.

 

References

https://www.mospi.gov.in/

https://pib.gov.in/PressReleasePage.aspx?PRID=2088390

Household Consumption Trends

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Santosh Kumar/ Sarla Meena/ Madiha Iqbal

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