Rural consumption increasing faster than urban consumption, data released after 11 years reveals

For the first time in 11 years, the Central Government released the findings of the All India Household Consumption Expenditure Survey on 24 February.

The Data shows that rural expenditure has increased rapidly. In the last two decades, the average monthly expenditure of rural and urban families has become almost the same. According to the new survey, the average monthly per capita expenditure (MPE) among Indian households increased by 33.5% to Rs 3,510 in urban households since 2011-12, while it increased by 40.42% to Rs 2,008 in rural households.

The average per capita monthly household consumption expenditure (MPCE) in the year 2022-23 was 3,773 in rural India and 6,459 in urban areas. The gap between rural and urban expenditure reduced from 83.9% to 71.2% in 2011-12, 88.2% in 2009-10 and from 90.8% to 71.2% in 2004-05.

A factsheet on the website of the Ministry of Statistics showed that in 18 years, the average MPCE in rural areas has increased more than six times, which is more than that in urban areas. In the year 2004-05, rural consumption was 579 and urban consumption was 1,105, which shows an increase of 552% in rural areas and 484% in urban areas.

The All India Household Consumption Expenditure Survey (HCES) was conducted between August 2022 and July 2023. The data is important to assess key economic indicators like GDP, retail inflation and poverty levels.

In 2022-23, the average MPCE of the bottom 5% of India's rural population was 1,373, while it was 2,001 in the same category in urban areas. For the top 5%, the average MPCE was 10,501 in rural areas and 20,824 in urban areas.

A comparative study of expenditure across states shows that it is highest in Sikkim (rural 7,731 and urban 12,105) and lowest in Chhattisgarh (rural 2,466 and urban 4,483). Monthly expenditure on food was found to be Rs 1,750 in rural areas and Rs 2,530 in urban areas, while non-food expenditure was Rs 2,023 in rural areas and Rs 3,929 in urban areas. Let us tell you that the household consumption expenditure survey is conducted every five years. But due to issues arising over the quality of data, the data for 2017-18 was not released. The last public survey was released in the year 2011-12.