Household Consumption Expenditure Survey, HCES Full Form, Key Findings

Household Consumption Expenditure Survey 2023–24 by MoSPI highlights declining inequality and rising rural MPCE; Household Consumption Expenditure Survey data helps in welfare schemes, CPI and poverty analysis.

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July 03, 2025

Household Consumption Expenditure Survey, HCES Full Form, Key Findings

Household Consumption Expenditure Survey (HCES) is a critical statistical exercise that captures the expenditure pattern of Indian households across rural and urban settings. Conducted by the Ministry of Statistics and Programme Implementation (MoSPI) through its National Sample Survey Office (NSSO), this survey provides data essential for understanding living standards, updating the Consumer Price Index (CPI), and informing policies related to poverty alleviation and welfare schemes.

Following the disruptions caused by the COVID-19 pandemic, MoSPI initiated two consecutive rounds of the Household Consumption Expenditure Survey, one during August 2022–July 2023 and another from August 2023–July 2024. The summary findings of the second round (HCES:2023–24) were released in June 2024 and are available on the official MoSPI website.

What is Household Consumption Expenditure Survey?

The household consumption expenditure survey is a large-scale, periodic survey conducted by the National Sample Survey Office (NSSO) under the MoSPI. It is designed to collect detailed information on the spending behaviour of households on various goods and services, ranging from food, clothing, and housing to education, healthcare, and transport.

The HCES full form is Household Consumption Expenditure Survey. It plays a crucial role in:

  • Assessing poverty and inequality.
  • Updating the basket of goods for the Consumer Price Index (CPI).
  • Calculating Monthly Per Capita Consumption Expenditure (MPCE).
  • Designing and evaluating government welfare schemes.

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Which Ministry Conducts Survey on Household Consumption Expenditure?

The household consumption expenditure survey is conducted by the Ministry of Statistics and Programme Implementation (MoSPI) through the National Sample Survey Office (NSSO). This survey is typically conducted every few years and forms the backbone of socio-economic planning and monitoring.

Recent Surveys and Their Context

Post-COVID, MoSPI initiated two consecutive household consumption expenditure surveys. The first was conducted from August 2022 to July 2023, and the second from August 2023 to July 2024.

  • The first survey’s factsheet was released in February 2024, and detailed reports were released in June 2024.
  • The second survey’s results, termed HCES: 2023–24, have been recently summarised and published on mospi.gov.in.

Both surveys covered all States and Union Territories, offering a panoramic view of India’s socio-economic fabric.

HCES 2023–24 Methodology and Coverage

The HCES 2023–24 surveyed 2,61,953 households1,54,357 rural and 1,07,596 urban—across all Indian States and Union Territories. Like the 2022–23 survey, two sets of Monthly Per Capita Consumption Expenditure (MPCE) estimates were generated:

  • Without imputation (excluding free items from welfare schemes)
  • With imputation (including imputed values of items received free through government schemes)

These estimates are published in Section A and Section B, respectively, of the HCES report.

Key Findings from HCES 2023–24

The Household Consumption Expenditure Survey 2023–24 provides valuable insights into the changing consumption behaviour of Indian households. It captures expenditure patterns, food versus non-food spending, rural-urban disparities, and regional variations. The findings help understand socio-economic progress, assess the impact of welfare schemes, and support evidence-based policymaking.

Below are the most important highlights from the HCES 2023–24:

1. Rise in Monthly Per Capita Consumption Expenditure (MPCE)

The average MPCE for 2023–24 (excluding free items under welfare schemes):

  • Rural India: ₹4,122
  • Urban India: ₹6,996

With imputation (including free welfare scheme items):

  • Rural India: ₹4,247
  • Urban India: ₹7,078

This reflects a significant increase from 2022–23 levels, indicating enhanced purchasing power, especially in rural areas.

2. Decline in Urban-Rural Consumption Gap

The urban-rural MPCE gap:

  • Reduced from 84% in 2011–12 to 71% in 2022–23
  • Further narrowed to 70% in 2023–24

This trend signifies improving rural living standards and reduced economic disparity.

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3. Shift in Consumption Patterns

In rural areas:

  • 46.38% of expenses go to food
  • 53.62% to non-food items

In urban areas:

  • 39.17% to food
  • 60.83% to non-food items

Major food expenditures include:

  • Beverages, refreshments, and processed food
  • Milk and milk products
  • Vegetables

Key non-food expenses:

  • Conveyance
  • Clothing & footwear
  • Durable goods
  • Rent (accounts for ~7% in urban areas)

This shift towards non-food items reflects socio-economic progress and lifestyle changes.

4. Consumption Inequality

Measured by the Gini coefficient, consumption inequality has decreased:

  • Rural: From 0.266 in 2022–23 to 0.237 in 2023–24
  • Urban: From 0.314 to 0.284

This marks an improvement in equitable resource distribution.

5. State and Union Territory-wise Variations

Highest MPCE:

  • Sikkim: ₹9,377 (rural), ₹13,927 (urban)
  • Chandigarh: ₹8,857 (rural), ₹13,425 (urban)

Lowest MPCE:

  • Chhattisgarh: ₹2,739 (rural), ₹4,927 (urban)
  • Dadra & Nagar Haveli and Daman & Diu: ₹4,311 (rural)
  • Jammu & Kashmir: ₹6,327 (urban)

States like Kerala, Punjab, and Andhra Pradesh show narrow urban-rural MPCE differences, signaling balanced development.

6. MPCE Across Fractile Classes

Significant findings among population segments:

  • Bottom 5% rural MPCE: ₹1,677
  • Bottom 5% urban MPCE: ₹2,376
  • Top 5% rural MPCE: ₹10,137
  • Top 5% urban MPCE: ₹20,310

Notably, the lowest-income groups experienced the highest growth in MPCE—22% in rural and 19% in urban areas—from 2022–23.

New Additions in the Household Consumption Expenditure Survey 2023–24

The latest survey expanded its item list from 347 to 405, adding:

  • Food: Dry fruits, packaged goods
  • Non-food: Toiletries, digital gadgets
  • Durables: Clothing, personal and medical equipment

This reflects modern consumption trends in both rural and urban India.

Nutritional Intake Data

MoSPI also released a companion report—‘Nutritional Intake in India’, estimating per capita and per consumer unit consumption of calories, protein, and fat:

  • Average Calorie Intake (2023–24):
    • Rural: 2,212 kcal
    • Urban: 2,240 kcal
  • Protein (grams):
    • Rural: 61.8
    • Urban: 63.4
  • Fat (grams):
    • Rural: 60.4
    • Urban: 69.8

Nutrient intake correlates positively with MPCE across all segments.

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Role of Social Welfare Schemes in HCES

Items like food grains, clothing, school uniforms, and digital devices received free of cost under government schemes were valued and imputed in the survey. However, services under PM-JAY and similar health schemes were excluded from imputation due to lack of transaction data.

Why HCES Data Matters

The household consumption expenditure survey plays a foundational role in Indian policymaking:

  • Poverty Estimation: Helps define poverty lines used by NITI Aayog and international bodies.
  • Welfare Targeting: Used in schemes like PM-GKAY, Ayushman Bharat, and Ujjwala Yojana.
  • CPI and GDP Calculations: Helps update weights and base years.
  • Inequality and Development: Reveals regional and economic disparities, supporting equitable growth policies.

Conclusion

The Household Consumption Expenditure Survey 2023–24 offers a modern and granular view of Indian household consumption trends. It highlights increasing rural expenditure, narrowing urban-rural gaps, and a shift in spending patterns towards non-food items. As India moves towards Viksit Bharat, the insights from HCES become indispensable for shaping inclusive and evidence-based development policies.

For aspirants of competitive exams such as UPSC, understanding the findings and methodology of the household consumption expenditure survey is crucial. It offers rich insights into the economic behaviour of Indian households, guiding not only policy but also academic and administrative discourse.

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Household Consumption Expenditure Survey FAQs

It helps track household spending and supports updating the Consumer Price Index (CPI) and poverty estimation.

HCES full form is Household Consumption Expenditure Survey, conducted by NSSO under MoSPI.

The Ministry of Statistics and Programme Implementation (MoSPI) conducts this survey via the NSSO.

It is conducted periodically; post-COVID, two rounds were held in 2022–23 and 2023–24.

The 2023–24 data shows a narrowing urban-rural MPCE gap, indicating faster rural consumption growth.

MPCE (Monthly Per Capita Consumption Expenditure) is the key indicator to assess economic well-being and inequality.

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