Household Consumer Expenditure Survey 2022-23 Highlights

Household Consumer Expenditure Survey 2023-24 Highlights

Household Consumer Expenditure Survey, conducted by NSSO to collect information on consumption patterns of households across the country. Check here highlights of Household Consumer Expenditure Survey 2023-24.

Table of Contents

Context: As per the Household Consumption Expenditure Survey (HCES), India’s average household consumption spending on a per capita basis rose about 3.5% in real terms from August 2023 to July 2024 from the previous year.

What is Household Consumer Expenditure Survey (HCES)?

Conducted By: National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
Frequency: Quinquennial (recurring every five years).

Objectives

The primary purpose of HCES is to collect information on the consumption of goods and services by households. This data is crucial for estimating various economic indicators such as:

Monthly Per Capita Consumption Expenditure (MPCE).
Poverty levels across different demographics.
Updates to the Consumer Price Index (CPI) and Gross Domestic Product (GDP) calculations

Highlights of HCES 2023-24

Aspect	Details
Rising Food Expenditure	Rural households: Share increased to 47.04% (2023-24) from 46.38% (2022-23). Urban households: Share increased to 39.68% (2023-24) from 39.17%.
Urban-Rural Expenditure Gap	Gap narrowed to 69.7% (2023-24) from 71.2% (2022-23), showing stronger growth in rural consumption spending over the decade.
Average Monthly Consumption Expenditure (MPCE)	Rural: Increased by 9.3% to ₹4,122 (2023-24) from ₹3,773 (2022-23). Urban: Rose to ₹6,996 from ₹6,459. Historical Context: MPCE in 2011-12: ₹1,430 (rural) and ₹2,630 (urban). Imputed consumption (with social welfare benefits): ₹4,247 (rural) and ₹7,078 (urban) (2023-24).
Income Distribution & Spending Trends	Top 5%: Decline in MPCE (₹10,137 rural; ₹20,310 urban) compared to 2022-23. Bottom 5%: Increase in MPCE (₹1,677 rural; ₹2,376 urban). Bottom 20%: Highest growth in spending (19.2% rural; 18% urban). Top 20%: Marginal growth (1.5% rural; 1.1% urban).
Consumption Inequality (Gini Coefficient)	Rural: Declined from 0.266 (2022-23) to 0.237 (2023-24). Urban: Declined from 0.314 to 0.284, indicating reduced inequality.
Sectoral Breakdown of Expenditure	Food Items: Cereals: Share increased slightly (4.99% rural; 3.76% urban). Beverages & processed foods: Highest share (9.84% rural; 11.09% urban). Non-Food Items: Rural: 52.96% (major expenses on conveyance, medical, and clothing). Urban: 60.32% (major expenses on rent, entertainment, and durable goods).
State-Wise Consumption Patterns	Higher Spending States: Maharashtra, Punjab, Tamil Nadu, Telangana, Kerala, Karnataka, Haryana, Gujarat, Andhra Pradesh. Lower Spending States: West Bengal, Bihar, Assam, Odisha, Uttar Pradesh, Madhya Pradesh, Jharkhand, Chhattisgarh. Rajasthan: Higher rural spending but lower urban spending than the national average.