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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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

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.