Lowest rural-urban disparity in Kerala, highest in Jharkhand: Consumption Expenditure Survey 2023-24

India's rural-urban consumption gap continued to shrink in 2023-24, with overall household spending rising across all segments, according to the detailed government report on Household Consumption Expenditure Survey (HCES).

The ministry has now released the detailed report along with the unit-level data.

The average monthly per capita expenditure (MPCE) was estimated at ₹4,122 in rural areas and ₹6,996 in urban areas, excluding benefits from social welfare programs. When adjusted for imputed values of subsidised goods, MPCE rose to ₹4,247 in rural areas and ₹7,078 in urban areas.

The urban-rural consumption gap narrowed to 70% in 2023-24 from 71% in 2022-23 and 84% in 2011-12. The gap decreased in all 18 major states, with Kerala recording the lowest disparity (18%) and Jharkhand the highest (83%).

The Gini coefficient, a key measure of inequality, showed a decline in consumption disparity. The index fell to 0.237 in rural areas from 0.266 in 2022-23, and to 0.284 in urban areas from 0.314 in the previous year, signalling a more equitable distribution of expenditure across major states.

Household expenditure increased across all major states, with Odisha registering the highest rural MPCE growth at 14% and Punjab leading in urban MPCE growth at 13%. Maharashtra and Karnataka recorded the lowest growth at 3% and 5% in rural and urban areas, respectively.

In terms of spending patterns, food accounted for 47% of rural household expenditure and 40% of urban expenditure. Among food items, beverages and processed food had the highest share, followed by milk products and vegetables. Non-food expenses were dominated by conveyance (7.59% in rural, 8.46% in urban), followed by medical costs and durable goods.

Among household types, salaried non-agricultural workers had the highest MPCE in rural areas, while urban spending was highest among the 'others' category.