According to a government survey, household spending has doubled every two decades

The most recent Household Consumer Expenditure Survey fact sheet, which was made public on February 24, states that India’s monthly per capita consumption expenditure increased by 33–40 percent between August and July of 2022–2023 as opposed to July and August of 2011–2012.

The average monthly household consumption expenditure (MPCE) per person in rural and urban regions of India in 2022–2023 was Rs 3,773 and Rs 6,459, respectively. Between 2011–12, 2009–10, and 2004–05, the difference in costs between rural and urban areas dropped to 71.2% from 83.9%, 88.2%, and 90.8%, respectively.

A Household Consumption Expenditure Survey (HCES) was undertaken by the National Sample Survey Office (NSSO), Ministry of Statistics and Program Implementation, from August 2022 to July 2023.

A factsheet on the Ministry of Statistics website states that in the last eighteen years, the average MPCE in rural regions has increased more than six times, outpacing the growth rate in metropolitan areas.

Rural spending was Rs 579 in 2004–05, while urban spending was Rs 1,105; this represents increase of 484% in urban regions and 552% in rural areas.

According to the report, the average MPCE at 2011–12 prices (without imputation) in urban areas grew from Rs 2,630 in 2011–12 to Rs 3,510 in 2022–2023.

In rural regions, it increased from Rs 1,430 to Rs 2,008 at 2011–12 rates.

It shown that, at current prices in urban areas, the average MPCE also rose (with imputation) to Rs 6,521 in 2022–2023 from Rs 2,630 in 2011–12.

In rural regions, it increased from Rs 1,430 to Rs 3,860.

In urban areas, the average MPCE at 2011–12 prices (with imputation) rose from Rs 2,630 in 2011–12 to Rs 3,544 in 2022–2023.

In rural regions, it went up from Rs 1,430 to Rs 2,054.

The ministry said in a statement on February 24 that the “full report of the survey will be published later.” As of right now, the only summary of the conclusions that is accessible is a “fact sheet.”

The purpose of this home consumption expenditure survey was to provide estimates of household MPCE and its distribution for the nation’s states, union territories, rural and urban areas, and various socioeconomic classes.

The MPCE estimates are derived on data gathered from 2,61,746 households in the core sample, which is dispersed over all of the nation’s states and union territories (1,55,014 in rural areas and 1,06,732 in urban areas).

Estimates of MPCE have been produced as a result of continuing the customary practice of imputation of the value figures for consumption out of (i) home-grown/home-produced stock and (ii) gifts, loans, free collection, and goods received in exchange for goods and services, etc. in HCES: 2022–2023.

Additionally, HCES: 2022–2023 includes a provision for gathering data on the amount of consumption for a variety of commodities that families acquire and utilize at no cost via different social welfare programs.

The value figures for the following items have been imputed using an appropriate method: (i) food items (rice, wheat/atta, jowar, bajra, maize, ragi, barley, small millets, pulses, gram, salt, sugar, edible oil) and (ii) non-food items (laptop/PC, tablet, mobile handset, bicycle, motor cycle/scooty, clothing (school uniform), footwear (school shoe, etc.) received by the households at no cost through these programs.

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