For the first time in 2022-23, the average spending on non-food items by rural India surpassed the 50 per cent mark, the latest Household Consumption Expenditure Survey (HCES) released by the Ministry of Statistics and Programme Implementation (MoSPI) said.
It further highlighted that in urban India, this proportion declined further to 39.17 per cent in 2022-23 from 42.62 per cent in 2011-12.
The spending on non-food items as a percentage of MPCE increased to 53.62 per cent in 2022-23 from 47.1 per cent in 2011-12.
In urban India, this proportion further increased to 60.83 per cent from 57.38 per cent during the same period.
In rural India, spending on cereals dipped to 4.89 per cent of MPCE in 2022-23 from 10.69 per cent in 2011-12, due to the free food grain supplies by the central government through Garib Kalyan Anna Yojana.
The Survey results released after 11 years show that as a share of monthly per capita expenditure (MPCE), spending on food items in rural India decreased to 46.38Per cent in 2022-23 from 52.9 per cent in 2011-12.
Spending on vegetables, pulses, edible oils, sugar, and salt also declined while spending on milk and milk products; egg, fish, and meat; fresh fruits; beverages, and processed food increased.
Among non-food items, spending share increased on paan, tobacco, and intoxicants; toilet articles and household consumables; medical, entertainment, rent, conveyance, and consumer services except conveyance and durable goods while the share of expenditure declined on items such as fuel and light; education, clothing and bedding and footwear, among others.
As per the survey, in urban India, spending on cereals, pulses, sugar and salt; egg, fish and meat, and edible oil declined while expenditure on milk and milk products, dry fruits, beverages, and processed foods increased.
It further said that at the current prices, the MPCE in rural areas increased to Rs 3,773 per month in 2022-23 from Rs 1,430 per person in 2011-12, a jump of 164 per cent , whereas in the urban areas, MPCE rose by 146 per cent to Rs 6,459 from Rs 2,630 during the same period.
Owing to the faster pace of increase in rural consumption, the difference in average monthly consumption expenditure between rural and urban households has narrowed to 71.2 per cent in 2022-23 compared with 83.9 per cent in 2011-12.
The latest data is expected to play a pivotal role in reviewing critical economic indicators such as the consumer price index (CPI), the gross domestic product (GDP), and poverty levels.