Rising Incomes Drive Surge in Household Spending Across India

Recent data released by the Ministry of Statistics highlights a substantial increase in household consumption expenditure across rural and urban India, signaling a notable uptick in living standards and overall well-being among the populace.

In rural areas, monthly per capita household consumption surged by over 40 percent during the 2022-23 period, when adjusted for inflation, compared to figures from 2011-12. This translates to a significant rise from Rs 1,430 to Rs 2,008 in absolute terms.

Similarly, urban regions witnessed a robust gain of 33 percent, with per capita household consumption expenditure climbing from Rs 2,360 to Rs 3,510 after adjusting for inflation.

In unadjusted terms, the figures for 2022-23 stood notably higher at Rs 6,459 for urban households and Rs 3,773 for rural households, compared to Rs 2,630 and Rs 1,430 respectively in 2011-12.

Household consumption expenditure encompasses various essentials such as food, fuel, electricity, medical services, transport, and education. Notably, the survey underscores that food accounts for a significant portion of household spending, representing 46 percent for rural households and 39 percent for urban households.

Moreover, there has been a discernible shift in consumption patterns, with a gradual decline in the per capita consumption of cereals like rice and wheat, accompanied by increased consumption of pulses, milk, vegetables, fruits, eggs, and meat. This shift reflects an improving standard of living, facilitated by rising incomes in the wake of India’s emergence as the world’s fastest-growing major economy.

The survey, conducted across 8,723 villages and 6,105 urban blocks, encompassing approximately 2.62 lakh households nationwide, offers crucial insights into the evolving dynamics of household spending in India.