Rural India's Monthly Per Capita Consumption Expenditure At Rs 3,773 In 2022-23: MoSPI Survey

This metric represents the overall household consumption expenses incurred during the month. It is calculated by dividing the total household monthly consumption expenditure by the household size

Rural India’s average monthly capital expenditure stood 71 per cent lower than urban India in the August 2022 to July 2023 period, the latest consumption survey by the Ministry of Statistics and Programme Implementation (MoSPI) revealed.

The Survey on Household Consumption Expenditure 2022-23 by the ministry found that rural India on an average clocked a Monthly Per Capita Consumption Expenditure (MPCE) of Rs 3,773 in the period under review, while urban India’s average estimated MPCE during the period stood at Rs 6,459. 

Household Consumption Expenditure

The household consumption expenditure represents the expenses incurred by a household on domestic consumption during the reviewing period. These expenses don’t include any entrepreneurial activities, real estate purchases, fine payments, etc. 

The survey stated, “Consumption of items produced in own farm or household enterprise is valued and included in household consumption expenditure. Also, goods and services received as payment in kind or free from employer, such as rentfree accommodation and free medical care, and reimbursement of travelling allowance for self & family excluding allowance for business trips are considered in household consumption expenditure.”

Monthly Per Capita Consumption Expenditure (MPCE)

This metric represents the overall household consumption expenses incurred during the month. It is calculated by dividing the total household monthly consumption expenditure by the household size. This provides an insight into the living standards of the household.

Food Related Expenses

The survey found in the 2022-23 period, Rural India spent 46 per cent of its household consumption expenditure towards food. In food items, beverages, refreshments, and processed food accounted for 9.62 per cent of the household expenses in the rural regions, while milk and milk products clocked 8.33 per cent of the expenses in the region. Other major expenditure in the category included vegetables at 5.38 per cent and cereals, cereal substitutes at 4.91 per cent.

Comparatively, Urban India spent 39 per cent towards food in the MPCE in the 2022-23 period, and the beverages, refreshments, and processed food sector attracted the highest expense share at 10.64 per cent. The region spent 7.22 per cent of their monthly expenses towards milk and milk products.  

Non-Food Expenses

In non-food items, the rural regions incurred maximum expenses towards conveyance at 7.55 per cent, followed by medical expenses at 7.13 per cent and durable goods at 6.89 per cent out of the monthly household consumption expenditure.

Meanwhile, urban India’s share of non-food expenses in MPCE stood at 61 per cent, with conveyance spending accounting for the largest share in the category at 8.59 per cent. Other major expenses in the category included durable goods at 7.17 per cent, and miscellaneous goods at 6.56 per cent.