India’s rural- urban consumption gap narrows in 2023-24: Govt

Spread the news

North News

New Delhi, January 30

India’s rural-urban consumption gap declined further in 2023-24, with urban households spending 70% more than rural ones, compared to 71% in 2022-23 and 84% in 2011-12, according to the latest Household Consumption Expenditure Survey (HCES) released by the Ministry of Statistics and Programme Implementation. The survey estimated the average Monthly Per Capita Expenditure (MPCE) at Rs 4,122 in rural areas and Rs 6,996 in urban areas, excluding the value of items received free through welfare programs. When factoring in these benefits, the figures rise to Rs 4,247 and Rs 7,078, respectively.

The data, collected from 2,61,953 households across India, showed that consumption inequality has declined. The Gini coefficient for rural consumption expenditure dropped to 0.237 in 2023-24 from 0.266 in 2022-23, while for urban areas, it fell to 0.284 from 0.314. Among the 18 major states surveyed, all recorded a reduction in the urban-rural MPCE gap. The survey generated two sets of estimates—one excluding and the other including the imputed values of social welfare benefits.