Tripled consumption levels; spending spree in villages; rural India enjoying high standard of living according to survey

NEW DELHI: The new household consumption survey has revealed that the rural-urban gap is narrowing in India. The survey also reports that rural India enjoys a high standard of living. In the last financial year, the monthly per capita expenditure in rural areas of Kerala was Rs 6,611 and in urban areas was Rs 7,783.

According to estimates from 2011-12 to 2023-24, consumption levels have almost tripled in both rural and urban areas. The government argues that this reflects economic empowerment. The rural sector has also gained more purchasing power. Goods and services are reaching more villages.

Households across India are spending more money on non-food items. The share of non-food expenditure in the household budget has crossed 50% by 2022-23. The share of non-food items is 53 percent in rural areas and 60 percent in urban areas.

Luxury plus entertainment

• In 2023-24, households in rural and urban areas prioritized transport, clothing, bedding, footwear, miscellaneous goods, entertainment and luxury goods.
• Beverages, snacks, and processed foods dominate food consumption in both rural and urban households.
• House rent, garage rent and hotel accommodation are also major components of the non-food expenditure of urban households.

HCES

The Household Consumption Expenditure Survey (HCES) collects information on household consumption of goods and services. The objective is to understand the distribution of consumption and expenditure, quality of life and well-being of households.