JOIN OUR WHATSAPP CHANNEL
What does latest Household Consumption Expenditure Survey reveal? Find out as Centre issues report after 11 years
After an 11-year hiatus, the government recently unveiled the findings of the All India Household Consumption Expenditure Survey, shedding light on crucial economic indicators such as GDP and CPI.
-
Government releases findings of All India Household Consumption Expenditure Survey after 11 years
-
Survey conducted between August 2022 and July 2023 sheds light on key economic indicators
After an 11-year hiatus, the government recently released the results of the All India Household Consumption Expenditure Survey, which shed light on key economic indicators such as GDP, poverty levels, and Consumer Price Inflation (CPI) as per The Hindu. This survey, conducted between August 2022 and July 2023, provides valuable insights into Indian households' spending habits, allowing for a more complete picture of the country's economy.
Rise in Per Capita Consumption Expenditure (MPCE)
The survey revealed a significant increase in average monthly per capita consumption expenditure (MPCE) across both urban and rural areas. Since 2011-12, urban households have seen a 33.5% increase in MPCE, reaching ₹3,510, while rural India saw a 40.42% rise, reaching ₹2,008.
This upward trend reflects changing consumption patterns and could indicate economic growth and higher living standards for many households.
The data also shows a significant shift in spending patterns, particularly in food expenditure. Compared to a decade ago, both rural and urban households spend less money on food each month.
Rural food spending fell from 52.9% to 46.4%, while urban food spending fell from 42.6% to 39.2%. This shift could have an impact on the calculation of the country's retail inflation, potentially resulting in a lower weightage for food prices in the inflation index. 
Impact of social welfare programs
The survey investigates the impact of social welfare programs, such as the PM Garib Kalyan Ann Yojana (PMGKAY) and state-run schemes, on household spending. Notably, the average MPCE figures do not include the imputed values of items provided free of charge through these programs.
However, when non-food items, such as computers, mobile phones, bicycles, and clothing, are included, the average MPCE rises slightly. This highlights the importance of government initiatives in encouraging household consumption and raising living standards.
The survey also reveals disparities in consumption expenditure among different segments of the population. The data shows that the bottom 5% of India's rural population, ranked by MPCE, spends an average of ₹1,373, while their urban counterparts spend ₹2,001.
The top 5% of rural and urban populations have significantly higher MPCE figures, at ₹10,501 and ₹20,824, respectively. These disparities highlight the existing socioeconomic divides in the country.
ALSO READ: What is South Bombay Croissant Pav Bhaji? Netizens react to food vlogger’s viral video
Know more about All India Household Consumption Expenditure:
Latest Articles
