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For the first time in 11 years, the central government announced the findings of the All India Household Consumption Expenditure Survey on February 24. Data shows that rural expenditure has increased rapidly. Over the last two decades, the average monthly expenditure of rural and urban households has become almost equal. According to a new survey, the average monthly per capita expenditure (MPCE) in Indian households increased by 33.5 per cent to Rs 3,510 in urban households since 2011-12, while it increased by 40.42 per cent to Rs 2,008 in rural households, according to a new survey.
The average monthly per capita consumption expenditure (MPCI) of households in 2022-23 was 3,773 in rural India and 6,459 in urban areas. The rural-urban expenditure gap declined from 83.9 per cent to 71.2 per cent in 2011-12, 88.2 per cent in 2009-10 and from 90.8 per cent to 71.2 per cent in 2004-05.
Average MPCI in rural areas has increased in 18 years
A factsheet on the statistics ministry's website found that average per capita monthly consumption expenditure in rural areas has increased more than six times in 18 years, more than that in urban areas. In 2004–05, rural consumption was 579 and urban consumption was 1,105, showing an increase of 552 per cent in rural areas and 484 per cent in urban areas. The all-India household consumption expenditure survey was conducted between August 2022 and July 2023. The data is important for estimating key economic indicators such as GDP, retail inflation and poverty levels. The average per capita monthly consumption expenditure of the bottom five per cent of India's rural population was Rs 1,373 in 2022-23, compared to Rs 2,001 in the same category. In urban areas. The average per capita monthly consumption expenditure for the top five percent was Rs 10,501 in rural areas and Rs 20,824 in urban areas.
Highest in Sikkim, lowest in Chhattisgarh
A comparative study of expenditure across states revealed that Sikkim had the highest expenditure (rural 7,731 and urban 12,105) and Chhattisgarh had the lowest (rural 2,466 and urban 4,483). The per month expenditure on food is Rs 1,750 in rural areas and Rs 2,530 in urban areas. While expenditure excluding food was 2,023 in rural areas and 3,929 in urban areas. It is noteworthy that the Indian Household Consumption Expenditure Survey is conducted every five years. But the data for 2017-18 was not published due to data quality issue. The survey data was last made public in 2011–12.
What was in the survey of 2017-18?
In 2019, the government said that the 2017–18 survey showed significant changes in consumption patterns and the direction of change. An expert committee that evaluated the data noted discrepancies and recommended changes to the process. The government said the Advisory Committee on National Accounts Statistics had separately recommended that 2017-18 was not an appropriate year to use as the new base year for recalculating the GDP series.