Household consumption expenditure jumps in India as incomes rise

Household consumption expenditure on goods and services in both the rural and urban areas of India, which reflects the standard of living and well-being of the population, has shown a robust increase over the last decade, according to the latest survey released by the Ministry of Statistics.

The monthly per capita household consumption in rural India jumped by over 40 per cent in 2022-23, after adjusting for inflation, compared to the corresponding figure recorded for 2011-12, according to the survey.

In absolute terms, the monthly per capita consumption expenditure in the country's rural areas shot up to Rs 2,008 in 2022-23 from Rs 1,430 in 2011-12.

Urban India also recorded a robust gain of 33 per cent with per capita household consumption expenditure rising to Rs 3,510 in 2022-23 from Rs 2,360 in 2011-12, after adjusting for inflation.Without adjusting for inflation, the figures stood at Rs 6,459 for urban households and Rs 3,773 for rural households in 2022-23, compared to Rs 2,630 and Rs 1,430 respectively in 2011-12, which are higher than the real term increase after adjusting for inflation.

Household consumption expenditure includes spending on food, fuel, electricity, medical services, transport and education.

The survey shows that in 2022-23, food accounted for about 46 per cent of the average rural household's consumption, while urban households allocated about 39 per cent of their monthly per capita consumption to food.

The survey also reveals that there has been a gradual decline in the per capita consumption of cereals such as rice and wheat in both rural and urban India as people are consuming more pulses, milk, vegetables, fruits, eggs and meat.

This change in the consumption pattern reflects an improvement in the standard of living over this period that has been made possible due to the rise in incomes as India has emerged as the world's fastest-growing major economy.

The survey was carried out in 8,723 villages and 6,105 urban blocks covering as many as 2.62 lakh households across the country.