Household Consumption Expenditure Survey (HCES), & Nutritional Intake in India

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3. Consumption Inequality

The Gini coefficient, which measures inequality, is slightly higher in urban areas.

• Rural India: 0.237 (2023-24) vs. 0.266 (2022-23)

• Urban India: 0.284 (2023-24) vs. 0.314 (2022-23)

Urban households consume nearly 1.7 times more than rural households.

4. Urban-Rural Consumption Gap

The urban-rural consumption gap measures the difference in average consumption expenditure between urban and rural households. In 2011-12, this gap was quite wide, at 84%, meaning that, on average, urban households spent 84% more than rural households.

By 2022-23, this gap had narrowed significantly to 71%, reflecting a noticeable increase in rural consumption relative to urban areas. This trend continued into 2023-24, with the gap further reducing to 70%. It suggests that rural consumption is gradually catching up, growing slightly faster than urban consumption.

5. State and Union Territory-wise MPCE

Regional variations in monthly per capita consumption expenditure show significant differences across states and Union Territories:

• Highest MPCE: Sikkim leads in states with ₹9,377 (rural) and ₹13,927 (urban). Chandigarh tops UTs with ₹8,857 (rural) and ₹13,425 (urban).

• Lowest MPCE: Chhattisgarh records the lowest among states with ₹2,739 (rural) and ₹4,927 (urban). Dadra & Nagar Haveli and Daman & Diu (rural ₹4,311) and Jammu & Kashmir (urban ₹6,327) rank lowest among UTs.

• Rural-Urban Gap: Meghalaya has the widest gap at 104%, followed by Jharkhand (83%) and Chhattisgarh (80%). A total of 9 out of 18 major states have MPCE above the national average.

6. New Inclusions

The questionnaire now covers 405 items (up from 347 in 2011-12), reflecting changes in household consumption patterns. New items added include:

• Food items: Dry fruits (almond, pistachio, hazelnut, other nuts), packed and processed foods.

• Consumables & services: Toilet articles.

• Durable goods: Clothing, other personal goods, sports and medical equipment, cooking and household appliances.

This gives a modern picture of current household spending behaviour.

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Nutritional Intake in India

The Household Consumption Expenditure Survey (2022-23 & 2023-24) gathered data on food consumed by households. Using nutrient values, the report ‘Nutritional Intake in India’ estimates daily per capita and per consumer unit intake of calories, protein, and fat. Here are the key highlights:

• A similar pattern in average per day calorie intake was seen in rural and urban India in 2022-23 and 2023-24.

• Nutritional Intake in Rural India: 2233 Kcal (2022-23), and 2212 Kcal (2023-24)

• Nutritional Intake in Urban India: 2250 Kcal (2022-23), and 2240 Kcal (2023-24)

• Increase in average intake seen for the bottom 5 fractile classes in rural and the bottom 6 in urban India.

• Calorie intake increases with a rise in MPCE in both rural and urban areas.

Average Daily Nutrient Intake in India

Here are the average Daily Nutrient Intake (All-India):

Note: The consumer unit adjusts for age, sex, and activity-based energy needs.

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Important Terms from HCES for the UPSC Exam

UPSC often asks questions on technical terms used in government reports. Here are key HCES-related terms you must remember:

MPCE (Monthly Per Capita Consumption Expenditure): The average consumption expenditure per person in month. It is the main indicator used to measure consumption levels.

Gini Coefficient: A statistical measure of inequality. It ranges between 0 (perfect equality) and 1 (perfect inequality).

Consumer Price Index (CPI): A measure that examines the weighted average of prices of consumer goods and services. HCES helps update the base year and weights for CPI.

Sampling and Recall Period: HCES uses random sampling for fair representation. The recall period is the time period respondents are asked to remember their expenditure (7 days, 30 days, or 365 days).

What is the Significance of HCES Findings?

The HCES 2023-24 provides critical information for economic planning and policy formulation. Here's why it matters:

• NITI Aayog uses HCES data to update poverty lines and calculate the Multidimensional Poverty Index (MPI).

• Welfare schemes like PM Garib Kalyan Anna Yojana and Ayushman Bharat rely on HCES data for accurate targeting.

• Consumption data from HCES contributes to calculating GDP and inflation through the National Accounts System (NAS).

• The rural-urban spending gap revealed by HCES helps identify inequalities and direct resources to underdeveloped areas.

• HCES tracks changes in economic behavior, enabling better evaluation of policies such as Ujjwala Yojana and PM Awas Yojana.

In summary, the Household Consumption Expenditure Survey gives us a fresh view of how Indian households spend their money. For UPSC aspirants, this survey is a goldmine of data, facts, and terms relevant for Prelims and Mains.

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