The Ministry of Statistics and Programme Implementation (MoSPI) has released a fact sheet detailing the findings of the Household Consumption Expenditure Survey (HCES) for the year 2022-23.
This survey, encompassing over 2.76 lakh households across rural and urban areas, provides valuable insights into India's economic dynamics, including private final consumption expenditure, income disparities, and other demographic indicators essential for gauging economic progress.
While the full report is awaited to be released by June, the released fact sheet offers intriguing revelations.
Here are the key takeaways from the MoSPI's report:
1. Tripled Spending Power
The survey indicates a substantial increase in average monthly spending by Indian families.
Urban households spent an average of Rs 6,521 monthly, while rural households spent Rs 3,860, marking a significant surge compared to figures from 2011-12. This rise, attributed to factors such as increased income and changing consumption patterns, signifies a notable economic shift.
2. Decreasing Rural-Urban Disparities
Data reveals a narrowing gap between rural and urban spending. Historically, urban households spent considerably more than their rural counterparts. However, recent trends suggest a convergence, with the spending differential shrinking to 68.9% in 2022-23 from previous years, indicating improved economic parity.
3. Shift in Food Spending
Unlike previous surveys where food expenses dominated rural consumption, the latest findings indicate a decline in its significance. In 2011-12, rural households allocated 53% of their expenditure to food, whereas this figure reduced to 46.38% by 2022-23. Similarly, urban food spending decreased from 43% to 39% during the same period, reflecting changing consumption patterns.
4. Income Disparities
The survey highlighted stark income disparities, with the top 5% of households spending approximately ten times more than the bottom 5%. Additionally, significant gaps persist even among different income brackets, stressing upon the inequality challenges.
5. Regional Spending Patterns
Regional analysis reveals intriguing spending patterns, with South India and the Northeast emerging as top spenders.
Telangana emerged as the leading spender in urban areas, boasting an average expenditure of Rs 8,251. However, when including Chandigarh, Sikkim, Goa, and Arunachal Pradesh in the comparison, Telangana ranks fifth.
Conversely, Chhattisgarh and Bihar recorded the lowest urban Monthly Per Capita Consumer Expenditure (MPCE), with figures of Rs 4,557 and Rs 4,819, respectively.
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