Rural consumption spend rises more than urban in 11 years till 2022-23; urban-rural gap narrows by over 11 percentage points

Rural consumption spend rises more than urban in 11 years till 2022-23; urban-rural gap narrows by over 11 percentage points

THE DIFFERENCE IN average monthly consumption expenditure between rural and urban household has narrowed to 71.2 per cent in 2022-23 compared with 83.9 per cent 11 years ago in 2011-12, according to the latest Household Consumption Expenditure Survey 2022-23 released by the Ministry of Statistics and Programme Implementation (MoSPI) on Saturday.

Among states, the rural-urban difference in average monthly per capita expenditure was the highest in Meghalaya (83 per cent) followed by Chhattisgarh (82 per cent) in 2022-23, the results showed.

The survey shows that rural consumption expenditure in India surged to Rs 3,773 per month for a person on an average in 2022-23 from Rs 1,430 eleven years ago in 2011-12, showing a jump of 164 per cent. This was higher than the increase in urban consumption expenditure to Rs 6,459 in 2022-23 compared with Rs 2,630 in 2011-12, an increase of 146 per cent.

This compares with rural consumption expenditure rising by 194 per cent to Rs 1,430 a month per person from Rs 486 during the previous 12-year period between 1999-2000 and 2011-12. Urban consumption expenditure had increased by 208 per cent to Rs 2,630 a month per person from Rs 855 during 1999-2000 to 2011-12

In 2022-23, a higher share of expenditure was made on non-food items than food items in rural areas. The average monthly per capita rural consumption expenditure on food stood at Rs 1,750 in 2022-23 as against an expenditure of Rs 2,023 on non-food items. In urban areas also, monthly per capita expenditure on food was lower at Rs 2,530 as against Rs 3,929 on non-food items.

The Household Consumption Expenditure Survey (HCES) collects information on consumption of goods and services by the households. It was decided to conduct two consecutive surveys during 2020-21 and 2021-22 to facilitate an appropriate period for the revision of the ‘base year’ for macroeconomic indicators, MoSPI said in its report. However, due to the emergence of Covid-19 pandemic, the survey of 2020-21 could not be started. The first of the two consecutive surveys began in August 2022 and continued till July 2023. The Ministry said it has only released a factsheet for 2022-23 and will release a detailed report soon.

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