The Household Consumption Expenditure Survey released by NSSO indicates a significant change in spending patterns by consumers. Spending in rural areas increased by 164 per cent and in urban areas by 146 per cent since 2011-12 at current prices.
The data suggests spending on food has significantly dropped both in rural and urban areas. The contribution of food items in MPCE in 2022-23 has declined to 46 per cent from about 53 per cent in 2011-12 in rural areas and to 39 per cent from 43 per cent in 2011-12 in urban areas.
However, the contribution of non-food items in MPCE in 2022-23 has increased to 54 per cent from about 47 per cent in 2011-12 in rural areas and to 61 per cent from 57 per cent in 2011-12 in urban areas.
From 2011-12 to 2022-23, consumption shares for milk & milk products, fruits, egg, fish and meat, beverages and processed food, conveyance, and durable goods have risen in both rural and urban sectors.
NSSO data also suggest a decline in the urban-rural gap in average MPCE. In 2022-23, the gap narrowed to about 71 per cent from 84 per cent in 2011-12 at current prices. When adjusted to 2011-12 prices, this gap narrowed to about 75 per cent from 84 per cent.
According to the survey, the country witnessed a significant surge in Monthly Per Capita Consumption Expenditure (MPCE) in 2022-23, with rural spending reaching Rs. 3,773 and urban spending at Rs. 6,459, reflecting a 164 per cent and 146 per cent increase, respectively, since 2011-12 at current prices. Adjusted to 2011-12 prices, the growth is 40 per cent in rural areas and 33 per cent in urban areas.
The data suggest that the contribution of food items in MPCE in 2022-23 has declined to 47 per cent from about 53 per cent in 2011-12 in rural areas and to 40 per cent from 43 per cent in 2011-12 for urban areas.
It says that the Gini coefficient, which is used to measure inequalities such as incomes, among others, shows a reduction in consumption inequality, with rural disparity dropping from 0.283 to 0.266 and urban disparity dropping from 0.363 to 0.314.
