In 18 years, the average MPCE in rural areas increased over six times, higher than in the urban areas, shows a factsheet on the Ministry of Statistics website. In 2004-05, the expenditure was Rs 579 in rural and Rs 1,105 in urban, which indicates a 552% growth in rural and 484% in urban areas.
The poorest 5% of the country survive on a daily consumption of just Rs 46 per person in rural areas and Rs 67 in urban areas, the Household Consumption Expenditure Survey 2022-23 shows.
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).
Indians generally caught in the 'act'.
Indians spending more on discretionary items; but less on food.
The average monthly expenses in rural and urban households have narrowed in the past two decades with a sharp rise in rural consumption, shows a key expenditure data released after a gap of 11 years.
The average per capita Monthly Household Consumption Expenditure (MPCE) in 2022-23 was Rs 3,773 in rural India and Rs 6,459 in urban areas. The gap in rural and urban expenses reduced to 71.2% from 83.9% in 2011-12, 88.2% in 2009-10, and 90.8% in 2004-05.
The Household Consumption Expenditure Survey (HCES) was conducted between August 2022 and July 2023. The data is key in assessing critical economic indicators like GDP, retail inflation, and poverty levels. During 2022-23, the bottom 5% of India's rural population had an average MPCE of Rs 1,373 while it was Rs 2,001 in the same category in urban areas.
For the top 5%, the average MPCE was Rs 10,501 in rural and Rs. 20,824 in urban areas.
In 2019, the government said the 2017-18 survey showed significant variation in consumption pattern and direction of change. An expert panel that assessed the data had noted discrepancies and recommended changes in the methodology.
The Advisory Committee on National Accounts Statistics had separately recommended that for rebasing of the GDP series, 2017-18 is not an appropriate year to be used as the new base year, the government had said.
Does it make a 'happy country' ?
Indians are spending less on food, particularly staples like rice and wheat.
But people do not mind coughing out money more on discretionary items such as processed food, as well as durables like televisions and fridges, government consumption data showed.
Spending on food fell to 46 per cent of monthly consumption for rural consumers from nearly 53 per cent in 2011-12, while in urban areas it fell to 39 per cent from 43 per cent.
Indians are spending less on cereals, including wheat and rice, and pulses. However, expenditures are increasing ... more on beverages, refreshments and processed food.
The survey, which took place after over a decade, also shows the large gap in consumption between the bottom 5% and the top 5%.
The per capita daily consumption for the richest 5% of the population is Rs 350 in rural areas and Rs 700 in urban areas.
According to the survey, the average monthly per capita consumption (in current prices) in rural and urban areas was Rs 3,773 and Rs 6,459 respectively - 2.5 times the monthly consumption recorded in 2011-12.
However, much of the growth in monthly consumption over the previous decade is because of inflation. In real term, monthly per capita consumption has grown by only 1.3 times in urban areas and 1.4 times in rural areas.
At 2011-12 prices, the same expenditure stood at Rs 2,008 in rural India and Rs 3,510 in urban India in 2022-23. This analysis, excludes the imputed values of items received free of cost through social welfare programmes.
Among the states, MPCE is the highest in Sikkim for both rural and urban areas (Rs 7,731 for rural and Rs 12,105 for urban).
It is the lowest in Chhattisgarh (Rs 2,466 for rural and Rs 4,483 for urban).
The rural-urban difference in average MPCE among the states is the highest in Meghalaya (83%) followed by Chhattisgarh (82%).
The last time such a survey was conducted by the National Sample Survey Office was in 2017-18, but the report was junked by the government after the findings indicated a fall in consumer spending.
The survey shows that the rural population spends an average of 46% on food items while the same is 39% for urban population.
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