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  1. Key takeaways: Household Consumption Expenditure Survey 2022-2023

Key takeaways: Household Consumption Expenditure Survey 2022-2023

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Upstox

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2 min read • Updated: February 26, 2024, 5:43 PM

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Summary

The top 5% of rural and urban population has an average MPCE of ₹10,501 and ₹20,824, respectively.

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The MPCE in urban locations has risen from ₹855 in 1999-2000 to ₹6,459 in 2022-23.

The Monthly Per Capita Consumption Expenditure (MPCE) more than doubled in 2022-23 as compared to 2011-12, National Sample Survey Office's (NSSO's) Household Consumption Expenditure Survey found.

The survey aims at generating estimates of household MPCE and its distribution separately for the rural and urban sectors of the country, for states and union territories, and for different socio-economic groups.

Here are key takeaways from Household Consumption Expenditure Survey 2022-23

  • The average MPCE stood at ₹3,773 in rural areas in 2022-23 as compared to ₹1,430 in 2011-12. Food items constituted 46% of the total expenditure while the remaining 54% was non-food items.
  • The average MPCE in urban areas in 2022-23 was ₹6,459 as compared to ₹2,630 in 2011-12. Food items constituted 39% of the total expenditure while the remaining 61% was non-food items.
  • As per the survey, the bottom 5% of the rural population has an average MPCE of ₹1,373 while it is ₹2,001 for the same category of population in the urban areas.
  • The top 5% of rural and urban population has an average MPCE of ₹10,501 and ₹20,824, respectively.
  • Highest MPCE (State-wise): Sikkim topped the highest Monthly Per Capita Consumption Expenditure (MPCE) across India with urban areas reporting an MPCE of ₹12,105 and rural areas at ₹7,731.
  • Lowest MPCE (State-wise): Chhattisgarh reported the lowest MPCE, standing at ₹4,483 for urban regions and Rs 2,466 for rural zones.
  • Highest and lowest MPCE (Union territory-wise): Among union territories, MPCE is the highest in Chandigarh for both rural and urban areas at ₹7,467 and ₹12,575, respectively. Ladakh has recorded the lowest MPCE of ₹4,035 for rural areas and ₹5,475 for urban areas.
  • Trend over time: The MPCE in rural areas has increased from ₹486 in 1999-2000 to ₹3,773 in 2022-23. Similarly, the MPCE in urban locations has risen from ₹855 in 1999-2000 to ₹6,459 in 2022-23.
  • Percentage composition of expenditure: The average spending on food items decreased from 59.40% in 1999-2000 to 46.38% in 2022-23 in rural areas. Similarly, the decrease during the same period in urban areas was from 48.06% in 1999-00 to 39.17% in 2022-23.