Ministry of Statistics and Programme Implementation (MoSPI) has released the factsheet of the Household Consumption Expenditure Survey (HCES) 2023-24, providing key insights into consumption patterns and economic well-being in India. The HCES collects data on household spending patterns to assess living standards, well-being, and consumption behavior. HCES has been conducted by the National Statistical Office (NSO) since 1951 as part of the National Sample Survey (NSS) under the MoSPI. Significance: Provides inputs for calculating Consumer Price Indices (CPI) and revising the base year for macroeconomic indicators like Gross Domestic Product (GDP). HCES helps to measure poverty, inequality, and social well-being.
Other related information
- After the COVID-19 pandemic subsides, MoSPI has decided to conduct two consecutive surveys on household consumption expenditure for 2022-23 and 2023-24.
- The first survey was conducted during the period August 2022 to July 2023, summaries of which were released in fact-tables in February 2024. The detailed report of the survey and unit-level data were released in June 2024.
- The second survey was conducted across the country from August 2023 to July 2024, the fact table of which has now been released by the Ministry of Statistics and Programme Implementation.
Key Findings of the HCES 2023-24
- Rising Consumption: Rural consumption spending increased significantly, with the average monthly per capita expenditure (MPCE) rising to Rs 4,122 (up 9.3% from Rs 3,773 in 2022-23). The MPCE of urban areas is Rs 6,996 (up 8.3% from Rs 6,459 in 2022-23). The gap between rural and urban consumption narrowed from 83.9% in 2011-12 to 69.7% in 2023-24, suggesting that rural consumption is growing faster than urban consumption. Imputed values for free benefits (e.g., food grains, school uniforms) under welfare schemes marginally increased MPCE estimates. Rural MPCE Rs 4,247 (with imputation) and Urban Rs 7,078 (with imputation).
- Regional Disparities: Sikkim had the highest MPCE Sikkim (rural Rs 9,377 and urban Rs 13,927), while Chhattisgarh (rural Rs 2,739 and urban Rs 4,927) recorded the lowest. Maharashtra, Punjab, Tamil Nadu, Telangana, and Kerala, showed higher-than-average per capita consumption spending. West Bengal, Bihar, Uttar Pradesh, and Madhya Pradesh, had lower spending than the national average. Among the Union Territories (UTs), MPCE is the highest in Chandigarh (Rural Rs. 8,857 and Urban Rs. 13,425), whereas it is the lowest in Dadra and Nagar Haveli and Daman and Diu (Rs. 4,311) and Jammu and Kashmir (Rs. 6,327) in rural and urban areas, respectively.
- Consumption Inequality: The Consumption Inequality, as measured by the Gini coefficient, has decreased in both rural and urban areas.The Gini coefficient dropped from 0.266 to 0.237 in rural areas and from 0.314 to 0.284 in urban areas from 2022-23 to 2023-24. Food Expenditure: In 2023-24, spending on food increased in both rural (47.04%) and urban (39.68%) areas, reversing previous declines. The highest food expenditure was on beverages, refreshments, and processed food, followed by milk, milk products, and vegetables.
- Non-Food Expenditure: The share of non-food expenditure remained high, at 52.96% in rural areas and 60.32% in urban areas. Rural households spent more on conveyance (7.59%), medical expenses (6.83%), and clothing and bedding (6.63%), while urban households spent more on conveyance (8.46%), miscellaneous goods (6.92%), and rent (6.58%). Fractile Consumption Patterns: In 2023-24, consumption spending decreased for the top 5% of both rural and urban populations, compared to 2022-23. In contrast, the bottom 5% saw significant increases, with rural spending rising 22% and urban spending growing 19%. This shows significant growth in consumption for the lower-income groups, indicating economic improvement.
Ministry of Statistics and Programme Implementation(MoSPI)
- It came into existence as an independent ministry in October 1999 after the merger of the Department of Statistics and the Department of Programme Implementation.
The Ministry has two wings
- The statistics wing called the National Statistical Office (NSO) consists of the Central Statistics Office (CSO), the Computer Centre, and the National Sample Survey Office (NSSO).
- NSSO and CSO were merged in 2005.