Fri Dec 27 13:04:17 UTC 2024: ## Consumption Inequality Falls in India: Rural and Urban Areas See Decline

**New Delhi, December 27, 2024** – India’s consumption inequality decreased in both rural and urban areas between August 2023 and July 2024, according to the latest Household Consumption Expenditure Survey (HCES) released by the Ministry of Statistics & Programme Implementation.

The survey reveals a decline in the Gini coefficient, a measure of inequality, from 0.266 to 0.237 in rural areas and from 0.314 to 0.284 in urban areas. This marks a significant improvement compared to the 2022-23 figures.

Average monthly per capita expenditure (MPCE) also saw an increase. Without considering social welfare schemes, the average MPCE was ₹4,122 in rural areas and ₹6,996 in urban areas. This represents a nominal increase of approximately 9% and 8% respectively compared to the previous year. Including imputed values from social welfare programs, the figures rise to ₹4,247 and ₹7,078.

The survey, based on data from 261,953 households, further indicates that the urban-rural MPCE gap narrowed to 70% in 2023-24, down from 71% in 2022-23 and a substantial decrease from 84% in 2011-12. This suggests sustained consumption growth in rural areas.

Non-food items constituted the majority of household expenditure, accounting for approximately 53% in rural areas and 60% in urban areas. In both rural and urban settings, beverages, refreshments, and processed food dominated food expenditure. For non-food expenditure, conveyance, clothing, and durable goods were major contributors, with rent playing a significant role in urban areas.

State-wise variations were observed, with Sikkim reporting the highest MPCE and Chhattisgarh the lowest. The rural-urban MPCE disparity was most pronounced in Meghalaya. Nine out of eighteen major states showed above-average MPCE in both rural and urban sectors.

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