1. The Ministry of Statistics and Programme Implementation, Government of India on 24th of February, 2024 released data from the Household Consumption Expenditure Survey (HCES) conducted in 2022-23. The survey which was carried out between August 2022 and July 2023 was the first one after 2011-12.
2. Since 1972, NSSO has been conducting the Consumer Expenditure Survey usually once every 5 years. The Survey shows many things such as what Indian households are consuming and spending on, poverty levels, Consumer Price Inflation basket among others.
3. Why is the survey conducted? The Survey helps the Policymakers and Experts to assess the income and expenditure levels of households, how and where they are spending their money, and to understand the efficacy of the policy measures.
4. The questionnaire of HCES 2022-23 contained 405 items as against 347 items in 2011-12.  In the present survey, three 3 questionnaires were used, covering:

• Food items;
• Consumables and services items, and
• Durable goods used.

5. Findings of the survey

1. The income levels of both the Urban and Rural households have risen since the last survey, with Rural households showing a sharper growth in spending.
2. The average Monthly per capita consumption expenditure (MPCE) of both Urban and Rural households has doubled in the 11-year period with both spending less on food items.
3. Average MPCE for Rural households, rose from Rs 1,430 in 2011-12 to Rs 3,773 in 2022-23, a 163.85 % increase over the period.
4. Average MPCE for Urban households increased from Rs 2,630 in 2011-12 to Rs 6,459 in 2022-23, a 145.59 % increase over the period.
5. Of the total expenditure, 46% was spent on food items in Rural households and 39% in Urban homes in 2022-23.
6. Household spending increased 2.6 times in Rural areas and 2.5 times in Urban areas since the last survey in 2011-12.
7. The gap between Urban and Rural household consumption has narrowed, and Indian households have been spending more on non-food items.
8. While the bottom 5% of India’s Rural population has an average MPCE of Rs 1,441, the top 5% of India’s Rural population has an average MPCE of Rs 10,581, i.e., 7 times the MPCE of the bottom 5 % rural population.
9. While the bottom 5% of India’s Urban population has an average MPCE of Rs 2087, the top 5% of India’s urban population has an average MPCE of Rs 20,846, i.e., 10 times the MPCE of the bottom 5 % Urban population.
10. The bottom 5% of India’s Rural population has an average MPCE of Rs 1,441 as compared to Rs 2,087 of the bottom 5 % of the Urban population, translating into a daily average consumption expenditure of Rs 48 in Rural areas and Rs 69.5 in Urban areas for the bottom 5%.
11. The top 5% of India’s Rural population, has an average MPCE of Rs 10,581 as compared to Rs 20,846 of the top 5% of the Urban population, translating into a daily average spending of Rs 352.7 in Rural areas and Rs 694.8 in Urban areas for the top 5%.
12. It can be inferred from the data presented in the survey that the difference between Rural and Urban MPCE has narrowed substantially over the years, implying the success of government policies in improving Rural incomes.
13. While the difference is more pronounced at the lower levels, the gap is bigger at the top, reflecting an increase in inequality at higher income levels.
14. The poorest Rural households have been able to spend at a much closer level to their Urban Counterparts, implying that government’s policy initiatives for enhancing Rural incomes have worked to an extent.