-
- The Household Consumption Expenditure Survey (HCES) is designed to collect information on consumption of goods and services by the households.
- The Survey also collects some auxiliary information on household characteristics and demographic particulars of the households.
- It is conducted by the National Statistical Office (NSO) every 5 years.
- The findings of the last HCES, conducted in 2017-18 were not released after the government cited “data quality” issues.
- The data collected in HCES forms the base for defining base years for various macroeconomic indicators such as Gross Domestic Product (GDP), poverty rates, and Consumer Price Inflation (CPI).
| Per Capita Consumption | • Urban households witnessed a 33.5% rise in MPCE since 2011-12, reaching ₹3,510. • Rural India experienced a 40.42% increase, reaching ₹2,008 over the same period.  • The average estimated Monthly Per Capita Consumption Expenditure (MPCE) stood at Rs 3,773 in rural India and Rs 6,459 in urban India for the year 2022-23 at current price levels. | |
|---|---|---|
| Regional inequality | • Sikkim emerged as the state with the highest MPCE in both rural (Rs 7,731) and urban (Rs 12,105) areas, while Chhattisgarh reported the lowest MPCE with Rs 2,466 in rural and Rs 4,483 in urban areas. • Rural-urban disparity in average MPCE was the highest in Meghalaya, followed by Chhattisgarh. • Examining the economic spectrum, the bottom 5% of the rural population had an average MPCE of Rs 1,373, while the top 5% had a significantly higher average of Rs 10,501. In urban areas, the bottom 5% and top 5% had MPCEs of Rs 2,001 and Rs 20,824, respectively.  | |
| Items coverage by the survey | • The survey covered 2.62 lakh households, categorizing the consumption basket into food items, consumables and service items, and durable goods. • A total of 405 items were covered, up from 347 items in the previous survey, providing comprehensive data to derive various macroeconomic indicators. • Considering imputed values of items received free through social welfare programs, the average estimated MPCE in 2022-23 was Rs 3,860 in rural and Rs 6,521 in urban India. | |
| Methodology | • Estimates of MPCE were based on Modified Mixed Reference Period (MMRP), capturing expenditure on essential items over specific reference periods. • MMRP considered expenditure on specific items over the “last 7 days” for certain categories and the “last 365 days” for others. • Adjusting for imputed values of items received free through social welfare programs and other sources, the average estimated MPCE in 2022-23 was Rs 3,860 in rural and Rs 6,521 in urban India. | |
| Changes in Consumption Patterns | • The survey highlights a narrowing gap in per-capita spending between rural and urban India over the last 11 years. • Changes in spending patterns indicate a decline in the proportion of spending on cereals and a rise in spending on milk products, eggs, fish, meat, and processed foods. | |
| Income inequality | • The MPCE of the top 5% in urban areas is 941% higher than the bottom 5%, indicating substantial income inequality. |
