India's urban-rural consumption expenditure gap decreases, goes down to 75%
A new survey by the Ministry of Statistics and Program Implementation reveals that rural monthly per capita consumption (MPCE) in India, has grown at a faster pace than its urban counterpart. The average MPCE in the rural sector rose by 40% in 2022-23 compared to 2011-12, while the urban sector's MPCE increased by only 33% during the same period. This has led to a decrease in differential between urban and rural MPCE from 84% in 2011-12 to 75% in 2022-23.
Decreasing gap in urban-rural consumption expenditure
The survey further highlighted a steady decrease in the gap between urban and rural MPCE over the years, falling from 90% in 2009-10 to 75% currently. In terms of actual figures, rural MPCE increased by 15% from ₹1,239 in 2009-10 to ₹1,430 in 2011-12. Conversely, urban MPCE rose by only 11% from ₹2,358 to ₹2,630 during the same period.
Survey coverage and nominal figures
The survey, which covered almost all of India except for a few inaccessible villages in Andaman and Nicobar Islands, collected data from over 261,000 households across 8,723 villages and 6,115 urban blocks. In nominal terms, the average estimated MPCE for 2022-23 was ₹3,773 in rural India and ₹6,459 in urban areas. This indicates that the per capita expenditure level in urban areas was about 71% more than that in rural areas.
Significant differences in MPCE among population percentiles
The survey also unveiled a significant disparity in MPCE between the top and bottom 5% of the population. The average MPCE of the top 5% of the rural population was about 7.6 times that of the bottom 5%. This gap was even more pronounced in urban areas, where the top 5%'s average MPCE was approximately 10.4 times that of the bottom 5%.
