Context:
The Household Consumption Expenditure Survey (HCES) released by MoSPI reveals major shifts in Indian household spending patterns between 1999–2000 and 2023–24, reflecting structural economic transformation.
Key Highlights:
- Decline in Food Expenditure Share
- Urban: From ₹48 to ₹39 per ₹100
- Rural: From ₹59 to ₹47 per ₹100
- Confirms Engel’s Law
- Dietary Diversification
- Decline in cereals expenditure
- Increase in:
- Fruits
- Eggs
- Fish
- Processed foods
- Indicates rising income and changing preferences
- Rise in Housing Costs
- Urban rent share increased:
- ₹4.46 → ₹6.58 per ₹100
- Reflects:
- Urbanisation
- Migration
- Rental stress
- Growth in Miscellaneous Category
- Rural share increased:
- ₹21.87 → ₹35.82 per ₹100
- Includes:
- Health
- Education
- Conveyance
- Energy & Fuel Trends
- Reduced per capita fuel spending
- Linked to:
- PM Ujjwala Yojana
- Saubhagya Scheme
- Energy-efficient appliances
Relevant Prelims Points:
- HCES: Conducted every five years by MoSPI.
- MPCE (Monthly Per Capita Expenditure): Indicator of living standards.
- Engel’s Law: Share of income spent on food declines as income rises.
- Urbanisation: Increasing population shift from rural to urban areas.
Relevant Mains Points:
- Structural Economic Transformation
- Shift from:
- Subsistence consumption
- To service and aspirational spending
- Reflects transition from agrarian to diversified economy.
- Social Implications
- Improved dietary diversity → Better nutrition (though unequal).
- Rising health and education spending → Human capital formation.
- Urban housing stress → Need for affordable housing policies.
- Rural-Urban Convergence
- Rural households increasing spending on:
- Services
- Education
- Healthcare
- Suggests gradual convergence in lifestyle aspirations.
- Public Policy Linkages
- Decline in fuel expenditure indicates:
- Impact of welfare schemes.
- Increased miscellaneous spending highlights:
- Rising out-of-pocket health expenditure concerns.
- Inequality Concerns
- Dietary diversification may be skewed towards higher-income groups.
- Urban rental inflation can exacerbate inequality.
Way Forward:
- Expand affordable urban housing initiatives.
- Strengthen public healthcare and education systems.
- Promote nutritional security through diversified agriculture.
- Monitor rural-urban price differentials.
- Improve frequency and granularity of consumption data.
UPSC Relevance:
GS 3 – Economy (Consumption, Structural Transformation)
GS 1 – Indian Society (Urbanisation, Lifestyle Changes)