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Consumption Data and Disparity in India



  Feb 26, 2024

Consumption Data and Disparity in India



What does the Household Consumption Expenditure Survey 2022-23 show about consumption disparity?

The survey shows a stark disparity, with the poorest 5% spending Rs.46 daily in rural areas and Rs.67 in urban areas, while the richest 5% spend Rs.350 and Rs.700 respectively.

How significant is the consumption gap between the richest and poorest?

The gap is substantial, with the richest 5% spending many times more than the poorest 5% in both rural and urban settings.

What has been the trend in average monthly consumption?

The average monthly per capita consumption has increased to Rs.3,773 in rural and Rs.6,459 in urban areas, which is 2.5 times higher than in 2011-12. However, much of this increase is attributed to inflation.

How does inflation affect the growth in consumption?

Inflation-adjusted growth shows that the real increase in consumption is only 1.3 times in urban areas and 1.4 times in rural areas over the past decade.

What is the average monthly per capita consumption expenditure (MPCE) for the bottom 5%?

For the rural bottom 5%, the average MPCE is Rs.1,373 and Rs.2,001 for the urban bottom 5%.

Which states have the highest and lowest MPCE?

Sikkim has the highest MPCE (Rs.7,731 rural, Rs.12,105 urban), and Chhattisgarh the lowest (Rs.2,466 rural, Rs.4,483 urban).

What is the rural-urban difference in MPCE across states?

Meghalaya has the highest rural-urban difference in MPCE at 83%, followed by Chhattisgarh at 82%.

When was the last survey conducted before this?

The last survey by the National Sample Survey Office was in 2017-18, but the report was discarded by the government due to findings indicating a fall in consumer spending.

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