Survey of Household Consumption Expenditure: 2023-24 Rural consumption will continue to accelerate as the urban-rural gap narrows further in 2023-24 from 2022-23 levels.
Fieldwork for the second survey on this topic has been conducted across the country from August 2023 to July 2024. Summary results of the Household Consumption Expenditure Survey: 2023-24 (HCES:2023-24) have been prepared at the state and broad item group levels and released in the form of factsheets. Factsheet of HCES:2023-24 is available on the Ministry's website (https://www.mospi.gov.in).
The HCES is designed to collect information on household consumption and expenditure on goods and services. The survey provides the data needed to assess trends in economic well-being and to determine and update the basket of consumer goods and services and weights used in the calculation of the Consumer Price Index. Data collected in HCES is also used to measure poverty, inequality and social exclusion. Monthly Per Capita Consumption Expenditure (MPCE) compiled from HCES is the primary indicator used for most analytical purposes.
Estimates of MPCE for the year 2023-24 are based on data collected from a central sample of 2,61,953 families (1,54,357 in rural areas and 1,07,596 in urban areas) in a central sample spread across all states and union territories of the country. As in HCES:2022-23, HCES:2023-24 also produced two sets of MPCE estimates: (1) without taking into account the imputed values of free goods received by households through various social welfare programs and (2) through various social welfare programmes. Considering the imputed values of items received free of cost by households. The first set of estimates is presented in Section A while the second set is presented in Section B[i] has been presented in.
Important findings of HCES: 2023-24
- The average MPCE in rural and urban India in the year 2023-24 will be Rs. 4,122 and Rs. 6,996, taking into account the value of goods received free of charge by the families through various social welfare programmes.
- Taking into account the imputed values of the goods received free of cost through various social welfare programmes, these institutions provide for rural and urban areas Rs. 4,247 and Rs. 7,078 clearly Rs. 7,078 becomes.
- In nominal prices, the average MPCE (without charges) in 2023-24 increases by about 9% in rural areas and 8% in urban areas from 2022-23 levels.
- The urban-rural gap in MPCE has reduced from 84 per cent in 2011-12 to 71 per cent in 2022-23. It further declines to 70 percent in 2023-24, confirming the continued pace of consumption growth in rural areas.
- When ranked by MPCE, the increase in average MPCE in 2023-24 from 2022-23 levels is maximum for the bottom 5 to 10 percent of India's population in both rural and urban areas.
- In line with the trend seen in HCES:2022-23, non-food items are the major contributor to average monthly household expenditure in 2023-24, accounting for 53 per cent and 60 per cent of MPCE in rural and urban areas, respectively.
- Beverages, refreshments and processed food account for a major share of expenditure in the food basket of rural and urban households in 2023-24.
- Conveyance, clothing, bedding and footwear, miscellaneous goods and entertainment and durable goods account for a large share of non-food expenditure of households in both rural and urban areas.
- House rent, garage rent and hotel accommodation charges, which account for around 7 per cent, are another major component of non-food expenditure of urban households.
- Consumption inequality in both rural and urban areas has declined from 2022-23 levels. The Gini coefficient has decreased from 0.266 in 2022-23 to 0.237 in 2023-24 for rural areas and from 0.314 in 2022-23 to 0.284 in 2023-24 for urban areas.