Household Consumption Expenditure Survey

28 Dec 2024

Household Consumption Expenditure Survey

Recently, the Household Consumption Expenditure Survey was conducted for the second consecutive year (2023-24) after a 11-year gap since 2011-12, following the cancellation of 2017-18 survey data due to “quality” concerns.

  • Two consecutive surveys were conducted for the periods August 2022–July 2023 and August 2023–July 2024, following the normalization of the COVID-19 pandemic situation.
  • The survey data is used to update the basket and weights for calculating the Consumer Price Index (CPI), measure poverty, inequality, and social exclusion, and analyze economic conditions.
  • The Monthly Per Capita Consumption Expenditure (MPCE) serves as the primary indicator for analytical purposes.

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Imputed Values

  • Imputed for goods received via welfare programs (e.g., rice, wheat, school uniforms, footwear).
  • Health and education services excluded due to valuation complexity.

Key Findings

  • Monthly Per Capita Consumption Expenditure Estimates:
    • Rural: ₹4,122 (without imputation), ₹4,247 (with imputation).
    • Urban: ₹6,996 (without imputation), ₹7,078 (with imputation).
    • MPCE increased by 9% in rural areas and 8% in urban areas compared to 2022-23.
  • Urban-Rural Gap:
    • The gap narrowed to 70% in 2023-24 from 71% in 2022-23 and 84% in 2011-12, indicating rural consumption growth.
  • Consumption Inequality:
    • Gini Coefficient declined:
      • Rural: 0.237 (2023-24) from 0.266 (2022-23).
      • Urban: 0.284 (2023-24) from 0.314 (2022-23).
    • Maximum MPCE growth (22% rural, 19% urban) observed among the bottom 5%–10% population.
  • Spending Composition:
    • Non-food items dominate: 53% in rural and 60% in urban MPCE.
    • Food and beverage spending was reduced due to lower spending on edible oils, despite high food inflation. 
      • Vegetable spending increased.
    • Major non-food contributors: conveyance, clothing, durable goods, rent.

State and Union Territory-wise MPCE

  • Highest MPCE:
    • States: Sikkim (Rural: ₹9,377, Urban: ₹13,927).
    • UTs: Chandigarh (Rural: ₹8,857, Urban: ₹13,425).
  • Lowest MPCE:
    • States: Chhattisgarh (Rural: ₹2,739, Urban: ₹4,927).
    • UTs: Dadra & Nagar Haveli and Daman & Diu (Rural: ₹4,311) and Jammu & Kashmir (Urban: ₹6,327).
  • Regional Disparities:
    • Highest rural-urban MPCE gap in Meghalaya (104%), followed by Jharkhand (83%) and Chhattisgarh (80%).
    • Nine out of eighteen major states have MPCE above the national average.

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Comparison with 2011-12

Year Rural MPCE (₹) Urban MPCE (₹) Adjusted for 2011-12 Prices (Rural ₹) Adjusted for 2011-12 Prices (Urban ₹)
2011-12 1,430 2,630 1,430 2,630
2023-24 4,122 6,996 2,079 3,632

Household Consumption Expenditure Survey

About Household Consumption Expenditure Survey (HCES)

  • Conducting Authority: The survey is conducted by the National Statistical Office (NSO) every 3–5 years.
    • Initially, HCES was conducted annually starting in 1950-51. However, since its 26th round, it has been conducted approximately every five years.
  • Purpose of the Survey: The survey is designed to collect information on the consumption of goods and services by households.
  • Coverage: The survey covers the entire Indian Union, excluding a few inaccessible villages in the Andaman and Nicobar Islands.
  • Significance of the Collected Data
    • It helps in assessing trends in economic well-being.
    • It is used to estimate poverty levels.
    • It updates weightages in the Consumer Price Index (CPI) to measure retail inflation.

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About National Statistical Office (NSO)

  • Formation: NSO was formed in 2019 by merging the Central Statistical Office (CSO) and the National Sample Survey Office (NSSO).
  • Recommendation: The establishment of NSO as the nodal body for core statistical activities was first suggested by the C. Rangarajan Committee.
  • Affiliation: NSO operates under the Ministry of Statistics and Programme Implementation (MoSPI).
  • Function: It collects, compiles, and disseminates reliable, objective, and relevant statistical data.

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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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