As rural consumption kept increasing, the monthly per capita consumption expenditure (MPCE) gap between urban and rural areas decreased from 71 per cent in the previous fiscal year to 70 per cent in 2023–2024, according to a Ministry of Statistics and Programme Implementation (MoSPI) survey.
The average MPCE in rural areas was estimated by the survey, which was conducted between August 2023 and July 2024, to be Rs 4,122, while in urban areas it was Rs 6,996, excluding the imputed value of items given away for free through government welfare programs. Incorporating these benefits increased the MPCE to Rs 7,078 in urban areas and Rs 4,247 in rural areas.
In MPCE, the urban-rural divide decreased from 84 per cent in 2011–12 to 71 per cent in 2022–2023. According to a ministry of statistics and programme implementation report, it has further decreased to 70 per cent in 2023–2024, confirming the steady momentum of consumption growth in rural areas.
Highest per capita consumption
The state with the highest monthly per capita consumption expenditure was Sikkim, with rural areas reporting Rs 9,377 and urban areas reporting Rs 13,927. However, Chhattisgarh had the lowest urban and rural MPCEs, at Rs 4,927 and Rs 2,739, respectively.
With an MPCE of Rs 8,857 in rural areas and Rs 13,425 in urban areas, Chandigarh was the most advanced Union Territories. Dadra and Nagar Haveli and Daman and Diu reported the lowest MPCE, at Rs 4,311 in rural areas.
Meghalaya had the largest rural-urban MPCE gap (104 per cent), followed by Chhattisgarh (80 per cent) and Jharkhand (83 per cent).
Non food item consumption
In rural areas, non-food items accounted for 53 per cent of total household spending, while in urban areas, they accounted for 60 per cent. The main drivers of non-food spending were durable goods, entertainment, apparel, and conveyance.
The ministry stated that rent, which accounts for about 7 per cent of households’ non-food expenses in urban India, is another significant factor.
Consumption on rent
House rent, garage rent, and hotel accommodations are included in the rent expenditures reported in the survey.
In line with patterns seen in the prior survey, beverages, processed foods, and milk products continued to be the main sources of food-related spending.
