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HCES stands for Household Consumption Expenditure Survey.
Who releases the Household Consumption Expenditure Survey?
The National Statistical Office (NSO) releases the Household Consumption Expenditure Survey.
Which ministry conducts survey on household consumption expenditure?
The Ministry of Statistics and Programme Implementation (MoSPI) conducts the survey on household consumption expenditure.
What is the Gini coefficient in HCES?
It measures inequality. A higher Gini means more inequality. HCES reports Gini values for both rural and urban areas.
When was the last HCES before 2023-24?
The last full Household Consumption Expenditure Survey was conducted in 2011-12.
Household Consumption Expenditure Survey (HCES), & Nutritional Intake in India
Household Consumption Expenditure Survey 2023–24, conducted by MoSPI after 11 years, reveals rising MPCE, narrowing rural-urban gaps, and lower inequality. The Household Consumption Expenditure Survey data is useful to enrich UPSC Mains answers.
Deeksha Dixit8 Jul, 2025
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The Household Consumption Expenditure Survey (HCES) collects data on what households spend on goods and services. It helps track living standards, update the Consumer Price Index, and guide poverty and welfare policies. MoSPI conducted two rounds of the Household Consumption Expenditure Survey after the COVID-19 pandemic.
The first was from August 2022 to July 2023, covering over 2.6 lakh households across all states and union territories. The second ran from August 2023 to July 2024. Summary results of both surveys are available on mospi.gov.in and must be studied for the upcomingUPSC Mains 2025exam. Read on to get relevant insights into the HCES 2023–24 survey!
What is the Household Consumption Expenditure Survey (HCES)?
The Household Consumption Expenditure Survey (HCES) is conducted by the National Sample Survey Office (NSSO) under the Ministry of Statistics and Programme Implementation (MoSPI). It is one of India’s most detailed surveys, carried out every few years.
HCES collects data on household spending patterns across rural and urban areas. It includes spending on food, clothing, health, transport, education, rent, communication, and more. The survey helps estimate:
Poverty levels
Inequality of income and consumption
Changes in living standards
Weighting diagrams for Consumer Price Index (CPI)
The last full HCES was conducted in 2011-12. The 2023-24 Household Consumption Expenditure Survey has been conducted after a gap of 11 years, addressing a major gap in socio-economic planning and policy evaluation.
The latest HCES 2023-24 was released by MoSPI in February 2024. It is based on data collected from August 2022 to July 2023 from nearly 2 lakh households across India. Here are some key highlights:
1. Rise in Monthly Consumption
In 2023–24, the Monthly Per Capita Consumption Expenditure (MPCE) was:
States like Maharashtra, Punjab, Tamil Nadu, Telangana, and Kerala have higher-than-average per capita consumption, while West Bengal, Bihar, Uttar Pradesh, and Madhya Pradesh are below the national average.
2. Food vs Non-food Expenditure
The food vs non-food expenditure is:
Rural areas spend 46.38% on food and 53.62% on non-food items.
Urban areas spend 39.17% on food and 60.83% on non-food items.
Major food expenditure item: Beverages, refreshments, and processed food in both rural and urban households.
Urban non-food specific item: Rent (house rent, garage rent, hotel accommodation) accounts for about 7% of urban non-food expenditure
Major non-food expenditures: Include conveyance, clothing, and consumer services.
This indicates improved standards of living and a shift towards spending on education, transport, and health.
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.
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):
Intake
Per Capita (Kcal/gm)
Per Consumer Unit (Kcal/gm)
Calorie
Rural: 2233→2212, Urban: 2250→2240
Rural: 2407→2383, Urban: 2488→2472
Protein
Rural: 61.9→61.8, Urban: 63.2→63.4
Rural: 66.7→66.6, Urban: 69.9→69.9
Fat
Rural: 59.7→60.4, Urban: 70.5→69.8
Rural: 64.4→65.1, Urban: 78.0→77.0
Note: The consumer unit adjusts for age, sex, and activity-based energy needs.
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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