New Delhi, Feb 26 (IANS) The Household Consumption Expenditure Survey (HCES) for 2022-23 shows a significant improvement in rural livelihoods, especially for the lowest-income classes. According to Emkay Global Financial Services analysis, the difference between rural and urban Monthly Per Capita Consumption Expenditure (MPCE) has decreased, indicating successful government policies.
The difference between rural and urban MPCE as a percentage of rural MPCE declined to 71 per cent in 2022-23 from 84 per cent in 2011-12 and over 90 per cent in 2004-05. The bottom five per cent of the pyramid now spend just 46 per cent of what the urban counterparts do, showing a narrowing gap. This suggests that government initiatives for enhancing rural incomes have been effective.
However, the highest 10 per cent of households still have a difference of over 85 per cent, reflecting rising income inequality at the top. Rural households have shown faster improvement since the last survey in 2011-12, narrowing the gap with urban households significantly, especially at lower income levels.
The share of food expenditure has decreased across all sections, while spending on proteins has increased. Rural households are now spending more on proteins than urban households, indicating better nutrition choices despite lower overall food expenditure. This trend is crucial as India still faces protein deficiency issues.
A time-series analysis reveals that both urban and rural households are shifting towards more aspirational spending on fruits, milk, consumer services, durable goods, and entertainment. The share of proteins in total food expenditure has also risen, showing a positive trend towards healthier eating habits in both rural and urban areas.
