In December 2024, the Ministry of Statistics and Programme Implementation (MoSPI) released the results of Household Consumption Expenditure Survey: 2023-24 (HCES: 2023-24). As per the latest survey, the average Monthly Per Capita Consumption Expenditure (MPCE) in rural and urban India has been estimated to be Rs 4,122 and Rs 6,996, respectively in 2023-24, without considering the values of items received free of cost by the households through various social welfare programmes.
- While, the average MPCE (without imputation) in nominal terms has increased by about 8% and 9% in urban and rural areas of the country, respectively in 2023-24 from the level of 2022-23.
- If imputed values of items received free of cost through various social welfare programmes is considered, then, these estimates will amount to Rs 4,247 and Rs 7,078, respectively for rural and urban areas.
Key Findings:
i.The survey showed that the urban-rural gap in MPCE has decreased from 84% (in 2011-12) to 71% (in 2022-23), which has further decreased to 70% (in 2023-24) which reflects sustained momentum of consumption growth in rural areas.
ii.As per the survey, Non-food items continue to be the major contributor to average monthly expenditure of households in 2023-24 with about 53% and 60% share in MPCE in rural and urban areas respectively.
v.The Gini coefficient for rural areas, has decreased from 0.266 (in 2022-23) to 0.237 (in 2023-24) and similarly, it decreased for urban areas, from 0.314 (in 2022-23) to 0.284 (in 2023-24).
Top Indian States with Average MPCE for Urban and Rural Areas:
i.The survey revealed that among 18 major Indian states, the average MPCE of 9 states have exceeded the all-India average MPCE both in rural and urban areas.
ii.States with highest average MPCE for urban areas in 2023-24: Telangana (Rs 8,978); Tamil Nadu (TN) (Rs 8,165); Karnataka (Rs 8,076); Maharashtra (Rs 7,363) and Andhra Pradesh (AP) (Rs 7,182).
iii.States with highest average MPCE for rural areas in 2023-24: Kerala (Rs 6,611); Punjab (Rs 5,817);TN (Rs 5,701) and Telangana (Rs 5,435).
Variation in MPCE Among States and UTs:
i.Sikkim reported the highest MPCE among all the Indian states, with Rs 9,377 in rural areas and Rs 13,927 in urban areas for 2023-24.
- While, Chhattisgarh recorded the lowest MPCE, with Rs 2,739 in rural areas and Rs 4,927 in urban areas for 2023-24.
ii.Chandigarh reported the highest MPCE among all the UTs, with Rs 8,857 in rural areas and Rs 13,425 in urban areas for 2023-24.
- While, Dadra and Nagar Haveli (Rs 4,311) and Jammu and Kashmir (J&K) (Rs 6,327)recorded the lowest MPCE in rural and urban areas of the country, in 2023-24.
iii.Among the states, Meghalaya (104%) has the widest rural-urban difference in MPCE, followed by Jharkhand (83%) and Chhattisgarh (80%).
Variation in MPCE across fractiles classes:
i.Average MPCE for the bottom 5% of India’s rural and urban population, ranked by MPCE, has increased by 22% and about 19%, respectively in 2023-24 compared to the level of 2022-23.
ii.The survey revealed that the bottom 5% of rural and urban population of India, ranked by MPCE has an average MPCE of Rs 1,677 and Rs 2,376, respectively.
iii.Also, average MPCE for the top 5% of rural and urban population of India, ranked by MPCE is Rs 10,137 and Rs 20,310, respectively.
Recent Related News:
In November 2024, the National Statistical Office (NSO) under the MoSPI released the 24th Periodic Labour Force Survey (PLFS) Quarterly Bulletin (July to September 2024).
- As per the report, Unemployment Rate (UR) in urban areas among persons aged 15 years and above has decreased by 20 basis points (bps), to 6.4% in 2nd Quarter(Q2: July-September) of Financial Year 2024-25 (FY25), from 6.6% in Q1 of FY25.
