Per capita monthly household consumer spending more than doubled during 2011-12 to 2022-23: HCES Report

The National Sample Survey Office (NSSO) has released findings from the Household Consumption Expenditure Survey (HCES) conducted from August 2022 to July 2023. This survey aimed to assess the Household Monthly Per Capita Consumption Expenditure (MPCE) across various demographics, spanning rural and urban sectors, states, union territories, and socio-economic groups.

Key Findings

1. Overall Growth in Consumption Expenditure:

• Per capita monthly household consumption expenditure more than doubled from 2011-12 to 2022-23.
• Average rural spending increased to ₹3,773 from ₹1,430, while urban spending rose to ₹6,459 from ₹2,630.

2. Disparities Across Income Strata:

• Bottom 5% of India’s rural population had an average MPCE of ₹1,441, whereas it was ₹2,087 in urban areas.
• Top 5% of India’s rural and urban population had an average MPCE of ₹10,581 and ₹20,846, respectively.

3. State-wise Disparities:

• MPCE was highest in Sikkim (Rural – ₹7,787, Urban – ₹12,125) and lowest in Chhattisgarh (Rural – ₹2,575, Urban – ₹4,557).
• Rural-urban disparity in MPCE was highest in Meghalaya (83%), followed by Chhattisgarh and Jharkhand (77%).

4. Disparities Among Union Territories:

• MPCE was highest in Chandigarh (Rural – ₹7,467, Urban – ₹12,577) and lowest in Ladakh (₹4,062) and Lakshadweep (₹5,511) for rural and urban areas, respectively.

5. Methodology and Imputation Practices:

• Imputation of consumption values for items like home-grown produce, gifts, loans, and goods from social welfare programs was practiced.
• Information on quantity of consumption for items received free of cost through social welfare programs was incorporated.
• Imputed values for these items were considered in MPCE estimation, offering a comprehensive understanding of household consumption patterns.