Urban-rural consumption gap continues to narrow: Govt survey

Urban-rural consumption gap continues to narrow: Govt survey

The Ministry of Statistics & Programme Implementation has released the Household Consumption Expenditure Survey for 2023-24, highlighting key trends in rural and urban spending patterns. The average monthly per capita consumption expenditure (MPCE) in rural areas increased to ₹4,122, while in urban areas it stood at ₹6,996 at current prices.

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Including the imputed value of free items received through government programmes, the MPCE rose to ₹4,247 for rural areas and ₹7,078 for urban areas.

Rural MPCE grew by 9%, while urban MPCE recorded an 8% rise compared to the previous year. The urban-rural gap in MPCE continued to narrow, dropping from 71% in 2022-23 to 70% in 2023-24.

The most significant growth in MPCE was observed among the bottom 5-10% of the population. The bottom 5% of rural households reported an average MPCE of ₹1,677, while their urban counterparts recorded ₹2,376. This segment experienced the largest percentage increase in MPCE — 22% for rural areas and 19% for urban areas.

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In contrast, the top 5% of rural and urban populations recorded average MPCEs of ₹10,137 and ₹20,310, respectively. However, a decline in spending was observed in this segment, with rural MPCE dropping by 3.59% and urban MPCE falling by 2.53%.

Non-food items remained the primary contributor to household expenditure in 2023-24, accounting for 52.96% of rural household spending. Among food expenses, beverages, refreshments, and processed foods were the major categories. For non-food items, conveyance, clothing, bedding, footwear, and entertainment were key contributors.

Among states, Sikkim reported the highest average MPCE, while Chhattisgarh recorded the lowest. In union territories, Chandigarh led in MPCE, with Jammu and Kashmir, Dadra and Nagar Haveli, and Daman and Diu registering the lowest.

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