Household Consumption Expenditure Survey

The Household Consumption Expenditure Survey (HCES) for 2023-24, conducted by the Ministry of Statistics and Programme Implementation (MoSPI), provides key insights into India’s consumption patterns.

Key Findings:

Average Monthly Per Capita Consumption Expenditure (MPCE):

• Rural Areas:₹4,122
• Urban Areas:₹6,996
• These figures exclude the value of items received free through social welfare programs.

Impact of Social Welfare Programs:

• Including the imputed values of free items, the MPCE increases to:
  • Rural Areas:₹4,247
  • Urban Areas:₹7,078

Urban-Rural Consumption Gap:

• The urban-rural MPCE gap has decreased to 70% in 2023-24, down from 84% in 2011-12, indicating a convergence in consumption patterns.

Consumption Inequality:

• The Gini coefficient, a measure of inequality, has declined:
  • Rural Areas: from 0.252 in 2022-23 to 237 in 2023-24
  • Urban Areas:from 0.314 in 2022-23 to 284 in 2023-24

Expenditure Composition:

• Rural Areas:Non-food items constitute 96% of MPCE.
• Urban Areas:Non-food items constitute 32% of MPCE.
• This shift from staple foods to non-food expenditures reflects changing consumption habits.

State-wise MPCE:

• Highest:Sikkim
  • Rural:₹9,377
  • Urban:₹13,927
• Lowest:Chhattisgarh
  • Rural:₹2,739
  • Urban:₹4,927