Household Consumption Expenditure Survey

Source: PIB
GS II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation

Overview

1. News in Brief
2. Key Facts

Why in the News?

Ministry of Statistics and Programme Implementation (MoSPI) released Household Consumption Expenditure Survey: 2023-24.

News in Brief

• HCES is designed to collect information on consumption and expenditure of households on goods and services.
• The survey provides data required to assess
  • Trends in economic well-being
  • Determine and update the basket of consumer goods and services and weights used for the calculation of the Consumer Price Index.
• Data collected in HCES is also used to measure poverty, inequality, and social exclusion.
• The Monthly Per Capita Consumption Expenditure (MPCE) compiled from HCES is the primary indicator used for most analytical purposes.

Key Facts

• The average MPCE in rural and urban India in 2023-24 has been estimated to be Rs. 4,122 and Rs. 6,996 not considering values of items received free of cost.
• Considering items received free of cost through various social welfare programmes, these estimates become Rs. 4,247 and Rs. 7,078 respectively, for rural and urban areas.
• Average MPCE (without imputation) in 2023-24 increases by about 9% in rural areas and 8% in urban areas from the level of 2022-23.
• The urban-rural gap in MPCE has declined to 70% in 2023-24 from 84% in 2011-12 confirming sustained momentum of consumption growth in rural areas.
• Non-food items remain the major contributor to the household’s average monthly expenditure in 2023-24 with about 53% and 60% share in MPCE in rural and urban areas respectively.
• Consumption inequality, both in rural and urban areas has declined from the level of 2022-23.

Consumption in various Classes

• The bottom 5% of India’s rural population, ranked by MPCE, has an average MPCE of Rs. 1,677 while it is Rs. 2,376 for the same category of population in the urban areas.
• The top 5% of India’s rural and urban population, ranked by MPCE, has an average MPCE of Rs. 10,137 and Rs. 20,310, respectively.
• Average MPCE in 2023-24 has increased the most (22%) from the level of 2022-23 for the bottom 5%.
• Average MPCE in 2023-24 for Urban population the growth has been about 19%..

State/UT-wise Variation in MPCE

• MPCE is the highest in Sikkim (Rural: Rs. 9,377 and Urban: Rs. 13,927) and it is the lowest in Chhattisgarh (Rural – Rs. 2,739 and Urban – Rs. 4,927).
• UTs, MPCE is the highest in Chandigarh (Rural: Rs. 8,857 and Urban: Rs. 13,425), whereas it is the lowest in Dadra and Nagar Haveli and Daman and Diu (Rs. 4,311) and Jammu and Kashmir (Rs. 6,327) in rural and urban areas.

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