Household Consumption Expenditure Survey estimates average rural consumer spending rose to Rs 3,773 ($45.54) a month per person for the 12 months through July from Rs 1,430 in the previous survey in 2011-2012, while urban spending rose to Rs 6,459 ($77.95) from Rs 2,630
New Delhi:
Indians are spending less on food, particularly staples like rice and wheat, and more on discretionary items such as processed food, as well as durables like televisions and fridges, government consumption data showed.
The Household Consumption Expenditure Survey, released late on Saturday, estimates average rural consumer spending rose to Rs 3,773 ($45.54) a month per person for the 12 months through July from Rs 1,430 in the previous survey in 2011-2012, while urban spending rose to Rs 6,459 ($77.95) from Rs 2,630.
The per capita monthly household expenditure more than doubled in 2022-23 as compared to 2011-12, according to the latest study of National Sample Survey Office (NSSO). NSSO, under Ministry of Statistics and Programme Implementation, conducted Household Consumption Expenditure Survey (HCES) during August 2022 to July 2023, an official statement said on Saturday.
The survey aims at generating estimates of household Monthly Per Capita Consumption Expenditure (MPCE) and its distribution separately for the rural and urban sectors of the country, for states and Union Territories, and for different socio-economic groups. As per the survey, the average MPCE at current prices (without imputation) more than doubled to ₹6,459 in urban areas in 2022-23 from ₹2,630 in 2011-12.
Similarly in rural areas, it jumped to ₹3,773 from ₹1,430 at current prices. As per the study, the average MPCE at 2011-12 prices (without imputation) also increased to ₹3,510 in 2022-23 from ₹2,630 in 2011-12 in urban areas.Similarly, it rose to ₹2,008 from ₹1,430 in rural areas at 2011-12 prices. It showed that the average MPCE also increased (with imputation) to ₹6,521 in 2022-23 from ₹2,630 in 2011-12 at current prices in urban areas.
Similarly, it rose to ₹3,860 from ₹1,430 in rural areas. The average MPCE at 2011-12 prices (with imputation) increased to ₹3,544 in 2022-23 from ₹2,630 in 2011-12 in urban areas.
It increased to ₹2,054 from ₹1,430 in rural areas. The estimates of MPCE are based on the data collected from 2,61,746 households (1,55,014 in rural areas and 1,06,732 in urban areas) in the central sample spread over all states and Union Territories.
In HCES:2022-23, the usual practice of imputation of the value figures for consumption out of home-grown/home-produced stock and gifts, loans, free collection and goods received in exchange of goods and services etc. has been continued; and accordingly, estimates of MPCE have been generated.
Besides, a provision for collection of information on the quantity of consumption for a number of items, received and consumed by the households free of cost through various social welfare programmes has been made in HCES:2022-23.
Consequently, the value figures for food items: rice, wheat/atta, jowar, bajra, maize, ragi, barley, small millets, pulses, gram, salt, sugar, edible oil and non-food items: laptop/PC, tablet, mobile handset, bicycle, motorcycle/Scooty, clothing (school uniform), footwear (school shoe etc.) received free of cost by the households through these programmes, have been imputed using an appropriate method.
Accordingly, another set of estimates of MPCE considering imputed values of these items and of consumption out of home produce, free collection, gifts, loans etc. has also been compiled for HCES: 2022-23.
Prime Minister Narendra Modi’s government did not release a 2017-2018 survey due to what it called “data quality issues”. The decision prompted controversy over whether the administration was concealing economic data.
The government denied suggestions it was withholding the data because they showed weak consumption trends.
The new survey will form the basis of a review of India’s consumer price inflation index.
Spending on food fell to 46 per cent of monthly consumption for rural consumers from nearly 53 per cent in 2011-12, while in urban areas it fell to 39 per cent from 43 per cent.
Indians are spending less on cereals, including wheat and rice, and pulses, but more on beverages, refreshments and processed food.
Among non-food items, consumers are spending more on conveyance, consumer services and durable goods, like televisions and fridges.
The results come before India goes to the polls in an election to be held by May, with Modi seeking a rare third term.
While the Indian economy is forecast to grow at a world-beating 7.3 per cent in the fiscal year that started in April and 7 per cent next fiscal year, large parts of the population living in rural areas face stagnant incomes and high inflation.
Reuters