What does the Household Consumption Expenditure Survey 2022-23 say? Here are the findings and insights unlocked

The Ministry of Statistics and Program Implementation recently released information from the Household Consumption Expenditure Survey (HCES). The survey was conducted in the year 2022-23. The results of the survey indicate what the households in India are actually consuming and spending on. This was the very first such information to be released by the Ministry of Statistics and Program Implementation in 11 long years. The last such attempt by the Ministry of Statistics and Program Implementation was actually conducted in the year 2011-2012. The field work for the HCES's second year, i.e. 2022-2024 has been started from August 2023.

Why is such information important?

First things first, the data thus released is crucial for updating the CPI (consumer price inflation) baskets. However, the data also offers the experts and policymakers a comprehensive assessment of the expenditure and income levels of the households of the country. The information indicates how and where these households are spending their hard-earned money. The information proves to be helpful in gauging the efficiency of the policy measures. 

What does the Household Consumption Expenditure Survey data for 2022-23 indicate?

The data of the Household Consumption Expenditure Survey 2022-23 points to an increase in the levels of income of the rural and urban households of the country. The rural households of the country have seen a sharp rise in expenditure. The data also indicates the fact that the gap between rich and poor in the country is widening.

As per the data of the HCES 2022-23, the average monthly per capita consumption expenditure (MPCE) of both rural and urban households has actually doubled in the long 11-year period. Both rural and urban households are spending less on food items. There has been a rise in the MPCE for rural households from Rs 1,430 in the year 2011-12 to Rs 3,773 in HCES 2022-23. Likewise, there has been an increase in the MPCE for urban households of the country as well, from Rs 2,630 in the previous round to Rs 6,459 in the HCES 2022-23. Out of this, a total of 39 percent of the expenditure was on food items in the urban households and 46 percent of the expenditure was on food items in the rural households in 2022-23.

The gap between the rich and the poor

The bottom 5 percent of the rural population of the country, as ranked by the MPCE, holds an average MPCE of Rs 1,441. In the case of urban areas, it is Rs 2,087. This indicates a daily average consumption expenditure of Rs 69.5 in the urban areas of the country and Rs 48 in the rural areas of the country for the bottom 5 percent.

However, if we talk about the top 5 percent of the rural and urban population of the country ranked by the MPCE, the section of people holds an average MPCE of Rs 20,846 in the urban population and an average MPCE of Rs 10,581 in the rural population. This points towards a daily average spending of Rs 694.8 in the urban households of India and Rs 352.7 in the rural households of the country.