Household Consumption Expenditure (2022-23)

Household Consumption Expenditure (2022-23)

Context: The Household Consumption Expenditure Survey (HCES) conducted by the Ministry of Statistics and Programme Implementation mentions the spending habits of Indian households. 

Expenditure on food items

• Nationally, both rural and urban households spent the most on ‘beverages, refreshments, and processed food‘ among food items, with a few states like Kerala and Rajasthan as exceptions.
• At the rural level, Haryana leads in spending on ‘milk and milk products’ (41.7%), and Kerala leads in spending on ‘egg, fish & meat’ (23.5%). In urban areas, Rajasthan tops in spending on ‘milk and milk products’ (33.2%), and Kerala leads in spending on ‘egg, fish & meat’ (19.8%).
• Tamil Nadu emerged as the top in spending on “beverages, processed food, etc.” (both in rural & urban).
• Food constitutes 46% of rural household spending and 39% of average monthly per capita consumption expenditure in urban areas. Milk and milk products have the second highest allocation in both areas.

Expenditure on non-food items

• “Conveyance” emerged as the top expense for non-food items in both rural and urban areas across most major states, followed by spending on durable goods, miscellaneous goods, and entertainment.
• Durable goods: Highest in Kerala (both rural and urban).
• Fuel & light: Highest in West Bengal (rural) and Odisha (urban).

Shifting Expenditure Patterns

• The consumption expenditure on non-food items has steadily risen over the years, surpassing 50% for the first time in 2022-23. Rural areas – 53.62%; Urban areas – 60.83%.
• In 2022-23, food expenditure fell below 50% of total monthly consumption for the first time.

Overall Consumption Growth

• Rural: Average monthly per capita expenditure increased by 164% to Rs 3,773 (2022-23) from Rs 1,430 (2011-12). Urban: Increase of 146% to Rs 6,459 (2022-23) from Rs 2,630 (2011-12).