Average monthly household consumption expenditure in rural and urban India, excluding benefits under social welfare programs, will be at Rs 4,122 crore and Rs 6,996 crore in 2023-24, according to data from the Household Consumption Expenditure Survey released on Friday. rose.
The data was shared by the Ministry of Statistics and Program Implementation based on a survey conducted between August 2023 and July 2024.
In terms of growth, MPCE in rural areas increased by about 9% year-on-year in nominal terms and by 8% in urban areas.
However, if the imputed value of free goods received through government programs is considered, the MPCE rises to Rs 4,247 in rural areas and Rs 7,078 in urban areas.
Interestingly, the urban-rural gap in MPCE has narrowed significantly. The 84% difference in 2011-2012 narrowed to 71% in 2022-23, and further declined to 70% in 2023-24.
The bottom 5% of India’s population, as ranked by MPCE, had the highest average spending growth in both rural and urban areas.
India’s bottom 5% in urban areas recorded an average monthly consumption of 2,376 rupees in 2023-2024, while the rural population recorded 1,677 rupees.
On the other hand, the top 5% of India’s rural and urban population are ranked by MPCE with an average MPCE of Rs 10,137 and Rs 20,310 respectively.
In terms of expenditure breakdown, non-food items accounted for the largest share, contributing 52.96% of MPCE for rural households and 60.32% for urban households. Food items accounted for 47.04% of MPCE for rural households and 39.68% for urban households.
Among food items, beverages, snacks, and processed foods are the main expenditures in both categories. According to the data, for non-food items, transportation, clothing, bedding, footwear and entertainment are the main drivers of household expenditure.
Among the states, monthly household consumption expenditure was highest in Sikkim and lowest in Chhattisgarh. Among union territories, Chandigarh had the highest MPCE, while Jammu and Kashmir, Dadra Nagar Haveli and Daman Diu had the lowest.
