India’s spending spree in villages shrinks urban-rural gap: Survey
Rural consumption in India continues to grow, narrowing the urban-rural gap in monthly per capita consumption expenditure (MPCE) to 70% in 2023-24, down from 84% in 2011-12. Both rural and urban areas saw increased expenditure, especially on non-food items
New Delhi: The sustained momentum in rural consumption in India continues with the urban-rural gap narrowing down further in 2023-24 from the level of 2022-23, according to the household consumption survey released by the Ministry of Statistics on Friday.
The urban-rural gap in the monthly per capita consumption expenditure (MPCE) has declined to 71 per cent in 2022-23 from 84 per cent in 2011-12. It has further come down to 70 per cent in 2023-24 that confirms sustained momentum of consumption growth in rural areas, the survey States.
The average MPCE in rural and urban India in 2023-24 has been estimated to be Rs 4,122 and Rs 6,996, respectively, without taking into account of the values of items received free of cost by the households through various social welfare programmes. Considering the imputed values of items received free of cost through various social welfare programmes, these estimates become Rs 4,247 and Rs 7,078 respectively, for rural and urban areas, the survey points out.
In nominal prices, the average MPCE (without imputation) in 2023-24 increases by about 9 per cent in rural areas and 8 per cent in urban areas from the level of 2022-23, the survey observes.
Consistent with the trend observed in HCES:2022-23, non-food items remain the major contributor to the household’s average monthly expenditure in 2023-24 with about 53 per cent and 60 per cent share in MPCE in rural and urban areas respectively, the survey observes.
Beverages, refreshments and processed food continues to have the major expenditure share in 2023-24 in the food items basket of the rural and urban households, the survey States. Conveyance, clothing, bedding and footwear, miscellaneous goods & entertainment and durable goods have major expenditure share in non-food expenditure of the households in both rural and urban areas, it added. Rent consisting of house rent, garage rent and hotel accommodation charges with about 7 per cent share is another major constituent of the urban households’ non-food expenditure, according to the survey.
