Urban-Rural Pattern
New survey shows urban-rural consumption inequality falling, says MoSPI
This story was originally published at 18:43 IST on 27 December 2024
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NEW DELHI – The government's latest Household Consumption Expenditure Survey shows consumption inequality between urban and rural areas fell in 2023-24 (Aug-Jul) from a year ago, the statistics ministry said Friday.
"The urban-rural gap in MPCE (Monthly Per Capita Consumption Expenditure) has declined to 71% in 2022-23 from 84% in 2011-12. It has further come down to 70% in 2023-24 that confirms sustained momentum of consumption growth in rural areas," the Ministry of Statistics and Programme Implementation said in a factsheet on the latest household survey, which is the second of the two back-to-back surveys done by the government.
The Household Consumption Expenditure Survey is crucial for updating the CPI inflation series, which is still based on consumption patterns from the 2011-12 (Jul-Jun) survey. However, it is also key to measuring poverty, inequality, and social exclusion.
As per the latest survey, rural households' average monthly per capita consumption expenditure was INR 4,122 in 2023-24, while that of urban households was INR 6,996 without taking into account the value of items they received for free via welfare programmes. Compared to the findings of the 2022-23 survey, these levels are 9.2% and 8.3% higher, respectively.
"When ranked by MPCE (Monthly Per Capita Consumption Expenditure), the increase in the average MPCE in 2023-24 from the level of 2022-23 has been the maximum for the bottom 5 to 10% of India's population, for both rural and urban areas," the ministry said, adding that consumption inequality, both in rural and urban areas, has declined from 2022-23.
As per the survey's factsheet, the bottom 5% of India's rural population had an average monthly per capita consumption expenditure of INR 1,677 in 2023-24, up 22.1% from 2022-23. Meanwhile, the increase in consumption expenditure for the bottom 5% of urban households was 18.7%. The top 5% of households, on the other hand, saw their monthly per capita consumption expenditure fall in 2023-24 by 3.5% in rural areas and 2.5% in urban areas. End
Reported by Siddharth Upasani
Edited by Saji George Titus
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