From Rs1,430 to Rs 6,459, urban India's monthly spending increased in the last 10 years
The last survey was conducted in 2017-18 soon after demonetization and the implementation of GST
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New Delhi: The latest study from the National Sample Survey Office (NSSO) reveals a significant rise in per capita monthly household expenditure, more than doubling from 2011-12 to 2022-23. The Household Consumption Expenditure Survey (HCES) conducted by NSSO during August 2022 to July 2023 provides insights into household Monthly Per Capita Consumption Expenditure (MPCE) across rural and urban sectors, states, Union Territories, and various socio-economic groups.
After 11 years the Centre has released the All India Household Consumption Expenditure(AIHCE) survey report which was taken between Aug 2022 and July 2023. The survey was based on data collected from 2,61,746 households, spread across all states and Union Territories, with 1,55,014 in rural areas and 1,06,732 in urban areas. The data will help establish critical economic indicators that include gross domestic product (GDP), Consumer Price Inflation (CPI), and poverty levels among others.
The NSSO is conducted once every five years. The last survey was conducted in 2017-18 soon after demonetization and the implementation of GST. Its findings were not released as the government cited “data quality issues”.
According to the survey's findings, the average MPCE at current prices (without imputation) surged to Rs 6,459 in urban areas in 2022-23, up from Rs 2,630 in 2011-12. Similarly, rural areas saw a substantial increase to Rs 3,773 from Rs 1,430 during the same period. At 2011-12 prices (without imputation), the average MPCE rose to Rs 3,510 in urban areas and Rs 2,008 in rural areas for 2022-23, compared to Rs 2,630 and Rs 1,430 respectively in 2011-12.
The study also indicates that when considering imputed values, the average MPCE increased even further. In 2022-23, with imputed values included, urban areas reported an average MPCE of Rs 6,521 at current prices, up from Rs 2,630 in 2011-12. Rural areas also saw an increase to Rs 3,860 from Rs 1,430. At 2011-12 prices (with imputation), the average MPCE in urban areas rose to Rs 3,544 in 2022-23, compared to Rs 2,630 in 2011-12. Similarly, rural areas experienced an increase to Rs 2,054 from Rs 1,430.
The estimates are based on data collected from 2,61,746 households, spread across all states and Union Territories, with 1,55,014 in rural areas and 1,06,732 in urban areas. The survey continued the practice of imputation for factors such as home-produced stock and gifts, loans, and free collections. Additionally, information on the consumption of items received free of cost through social welfare programs was collected, including food items like rice, wheat/atta, and pulses, and non-food items like laptops/PCs, mobile handsets, and clothing.
The release of the HCES: 2022-23 factsheet provides crucial insights into the changing consumer spending patterns in India, highlighting a significant increase in household expenditure over the last decade. This data is valuable for policymakers, businesses, and analysts to understand and respond to the evolving economic landscape and consumer behavior. The detailed report is available on the Ministry of Statistics and Programme Implementation website for further analysis and reference.
