Rural-urban household spending gap narrows

Posted on:
Key Points

The gap between urban and rural household consumption has narrowed, and Indian household spending on non-food items has risen, showed the results of Household Consumption Expenditure Survey (HCES) 2022-23 released on Saturday...

Household spending increased 2.6 times in rural areas and 2.5 times in urban areas since the last survey, conducted in 2011-12..

The latest results showed that rural households spent 46% on food and the rest on non-food items, whereas urban households spent 39% on food in 2022-23...

The survey also found that rural and urban areas' consumption was even higher if one imputes the value of items that households receive for free via social welfare programmes..

Rural households spent 2.3% more, i.e., 3,860 per month including value of free goods, whereas urban households spent Rs 6,521 or 1% more.. "Among the states, MPCE (monthly per capita consumer expenditure) is the highest in Sikkim for both rural and urban areas (Rural - 7,731 and Urban - Rs 12,105)..

You might be interested in

Latest NSSO consumer survey indicates poverty down to 5 per cent: NITI Aayog CEO

25, Feb, 24

The latest consumer expenditure survey reveals that poverty in India has decreased to below five per cent. Per capita monthly household expenditure has doubled, indicating increased prosperity in rural and urban areas. The survey also shows a decrease in consumption of cereals and food, with people spending more on milk, fruits, vegetables, and processed food.

Mint Explainer: What does the latest survey of household consumption spending reveal?

26, Feb, 24

Significantly, the share of spending on food has fallen below 50% for the first time in rural India.

Monthly household consumer spending more than doubled in last decade

25, Feb, 24

New Delhi, Feb 25 (PTI) The per capita monthly household expenditure more than doubled in 2022-23 as compared to 2011-12, according to the latest study of National Sample Survey Office (NSSO). NSSO, under Ministry of Statistics and Programme Implementation, conducted Household Consumption Expenditure Survey (HCES) during August 2022 to July 2023, an official statement said […]

Brookings report backs PM Modi's policy thrust, says it helped eliminate extreme poverty

02, Mar, 24

A commentary authored by economists Surjit Bhalla and Karan Bhasin from The Brookings Institution stated that the pace of poverty reduction in India is remarkable, with the country witnessing a decline that previously took three decades to achieve, now realized over just 11 years.

Indians spent more on paan, tobacco in last 10 years, education expenditure falls: Govt survey

03, Mar, 24

The Household Consumption Expenditure Survey 2022-23 indicates a notable increase in the proportion of income spent on paan, tobacco, and intoxicants over the past decade in both rural and urban areas. Expenditure on these items rose to 3.79% in rural and 2.43% in urban areas. Meanwhile, spending on education decreased, and spending on beverages, processed food, and conveyance saw an uptick. The survey also reveals a significant rise in Monthly Per Capita Consumption Expenditure (MPCE) from 2011-12 to 2022-23 in both urban and rural areas.

India’s household consumption survey captures predictable changes

28, Feb, 24

Spending trends over the past decade or so are found to be on expected lines, but why expenditure lags growth in national income is a good question.

India’s consumption survey: A significant shift amid modest gains

27, Feb, 24

A long-awaited survey that plugs a glaring data gap points to rising household expenditure, superior diets and a critical change: rural households spending less on food than other items. This is momentous for country emerging from deprivation.

Lower on food, higher on conveyance & durables — how consumption patterns changed in past decade

08, Mar, 24

Household Consumption Expenditure Survey shows urban-rural gap has narrowed, particularly at lower levels of consumption, implying effectiveness of govt policies in improving rural incomes.