Rural Consumption in India Grows, Urban-Rural Disparity Decreases: Report
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New Delhi, Dec 27 (NationPress) The ongoing growth in rural consumption in India remains strong, with the disparity between urban and rural areas further decreasing in 2023-24 compared to 2022-23, according to a household consumption survey published by the Ministry of Statistics on Friday.
The monthly per capita consumption expenditure (MPCE) gap between urban and rural regions has dropped to 71 percent in 2022-23 from 84 percent in 2011-12. It has further decreased to 70 percent in 2023-24, confirming a sustained growth trend in rural consumption, as stated by the survey.
The average MPCE for rural and urban India in 2023-24 is projected to be Rs 4,122 and Rs 6,996, respectively, not accounting for the values of items received free through various social welfare programs.
When factoring in the imputed values of items provided free through social welfare initiatives, these figures adjust to Rs 4,247 and Rs 7,078 for rural and urban areas, as highlighted in the survey.
In nominal terms, the average MPCE (excluding imputation) for 2023-24 shows an increase of approximately 9 percent in rural areas and 8 percent in urban areas compared to 2022-23, according to the survey.
When assessing MPCE rankings, the most significant increase in average MPCE for 2023-24 over 2022-23 has been observed among the bottom 5 to 10 percent of India's population in both rural and urban areas, reflecting a trend towards more equitable economic growth.
Consistent with the findings of HCES:2022-23, non-food items continue to be the primary contributor to households' average monthly expenditures in 2023-24, accounting for approximately 53 percent and 60 percent of MPCE in rural and urban areas, respectively.
These statistics suggest that increasing income levels are enabling individuals to allocate more funds towards other goods after fulfilling essential food expenditure.
In 2023-24, beverages, refreshments, and processed food dominate the expenditure share in the food item category for both rural and urban households, according to the survey.
Expenditure on conveyance, clothing, bedding, footwear, miscellaneous goods, entertainment, and durable goods represents significant non-food expenditure for households across both rural and urban areas, the survey adds.
Rental costs, including house rent, garage rent, and hotel accommodation fees, constitute around 7 percent of urban households' non-food expenses, as reported in the survey.
Consumption inequality in both rural and urban regions has decreased since 2022-23, as indicated by the Gini coefficient reducing to 0.237 in 2023-24 from 0.266 in 2022-23 for rural areas, and to 0.284 in 2023-24 from 0.314 in 2022-23 for urban areas, the survey further notes.
The fieldwork for the second survey was conducted between August 2023 and July 2024 across the entire nation.
The MPCE estimates for 2023-24 are derived from data collected from 261,953 households (154,357 in rural areas and 107,596 in urban areas) within a central sample distributed across all states and Union Territories of the country, according to the official statement.
