Rural Household Consumption Expenditure Grows 9% In 2023-24, Higher Than Urban Areas
The urban-rural gap in consumption expenditure has narrowed significantly. From a gap of 84% in 2011-12, it reduced to 71% in 2022-23, and further declined to 70% in 2023-24.
The average monthly household consumption expenditure in rural and urban India rose to Rs 4,122 and Rs 6,996 in 2023-24, excluding the benefits from social welfare programs, according to data of household consumption expenditure survey released on Friday.
The data was shared by the Ministry of Statistics & Programme Implementation, based on the survey conducted between August 2023 and July 2024.
In terms of growth, the MPCE in rural areas saw a rise of approximately 9% in nominal terms from the previous year, while urban areas experienced an 8% increase.
However, when factoring in the imputed values of free items received through government programs, the MPCE rises to Rs 4,247 in rural areas and Rs 7,078 in urban areas.
Interestingly, the urban-rural gap in MPCE has narrowed significantly. From a gap of 84% in 2011-12, it reduced to 71% in 2022-23, and further declined to 70% in 2023-24.
The bottom 5% of India’s population, ranked by MPCE, saw the highest growth in average expenditure in both rural and urban sectors.
The bottom 5% of urban India recorded an average monthly consumption of Rs 2,376 in 2023-24, while for the rural population it was Rs 1,677.
Meanwhile, the top 5% of India’s rural and urban population, ranked by MPCE, has an average MPCE of Rs 10,137 and Rs 20,310, respectively.
When breaking down expenditures, non-food items account for the largest share, contributing 52.96% to rural households' MPCE and 60.32% to urban households. Food items contribute 47.04% to rural household's MPCE and 39.68% to urban households.
Among food items, beverages, refreshments, and processed foods lead as the major expense in both areas. For non-food items, conveyance, clothing, bedding and footwear, and entertainment are key contributors to household expenditure, the data showed.
Among the states, the monthly household consumption expenditure was the highest in Sikkim and it was the lowest in Chhattisgarh. For the union territories, Chandigarh had the highest MPCE, while it was lowest in Jammu and Kashmir, Dadra and Nagar Haveli and Daman and Diu.
