Thu Jan 02 12:31:30 UTC 2025: ## India’s Household Consumption Rises, But Disparities Remain: New Survey Reveals

**NEW DELHI** – A new Household Consumption Expenditure Survey (HCES) reveals a rise in average monthly per capita expenditure (MPCE) across India, but significant disparities persist between states, particularly within the BIMAROU states (Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh, and Odisha).

The Ministry of Statistics & Programme Implementation (MoSPI) released the 2023-24 HCES data, showing a nominal increase of approximately 9% in rural MPCE (to ₹4,122) and 8% in urban MPCE (to ₹6,996). Including the value of social welfare programs, these figures rise to ₹4,247 and ₹7,078 respectively. The urban-rural gap has narrowed considerably, decreasing from 84% in 2011-12 to 70% in 2023-24. Significantly, the lowest income groups saw the most substantial MPCE increases.

A notable shift in consumption patterns is evident. For the first time since independence, average household food expenditure has fallen below 50% of total monthly spending, reflecting a diversification towards non-food items (53% in rural areas, 60% in urban). This trend aligns with Engel’s Law. Reduced cereal expenditure, especially among lower-income households, suggests the success of government food security initiatives.

However, significant state-level disparities persist. BIMAROU states, historically lagging in development, continue to show lower MPCE than the national average. Bihar and Uttar Pradesh reported the lowest rural and urban MPCEs. Several other states, including Chhattisgarh, Jharkhand, West Bengal, and Assam, also fell below the national average in both rural and urban MPCE.

The survey’s findings have major implications for poverty estimation. With detailed consumption data now available, experts suggest a review of the current poverty line and other metrics like the consumer price index is necessary. Future poverty alleviation efforts, according to the author, should prioritize states like Jharkhand and Chhattisgarh, where MPCE remains significantly lower than the national average. The unit-level data, expected soon, will allow for a more precise analysis of these trends and inform future policy decisions.

Read More