The Household Consumption Expenditure Survey (HCES) by the Ministry of Statistics and Programme Implementation (MoS&PI) captures spending pattern of Indian households across various consumption categories. Conducted every five years, the HCES provides granular estimates of Monthly Per Capita Expenditure (MPCE) for both rural and urban populations, covering a wide range of goods and services.

The survey rounds for 2022-23 and 2023-24 represent the first comprehensive update to MPCE data in over a decade, offering valuable insights into India’s shifting consumption landscape. These findings are central to revising poverty estimates, informing social sector policy, and understanding the lived realities of India’s expanding middle-income population.

This article examines long-term MPCE trends from 1999-2000 to 2023-24, with a focus on six key expenditure categories. In this analysis, MPCE is expressed as the proportional expenditure on an item for every ₹100 of total spending.

Decline in MPCE share on food and beverages for both urban (from ₹48 to ₹39 per ₹100) and rural areas (from ₹59 to ₹47 per ₹100) confirms Engel’s Law, which states that as real income rises, the proportion of income spent on food declines, even if absolute expenditure increases. The chart below shows the monthly per capita expenditure on food and beverages (in Rupees per 100 rupees)

Further, a fall in expenditure on cereals, alongside higher spending on fruits, eggs, fish, and processed foods, signals a shift from staple-heavy diets to more varied, protein-rich diets — albeit unequally.

Despite marginal increases, particularly in rural areas, spending on pan, tobacco, and other intoxicants remains a low share of MPCE, accounting for under ₹3.8 per ₹100 of spending.

From a public health perspective, the trend calls for targeted awareness programs in rural belts. The chart below shows the Monthly Per Capita Expenditure on Pan, Tobacco & Intoxicants (in Rupees per 100 rupees)

The reduction in per capita fuel spending reflects policy successes, such as Saubhagya (rural electrification) and PM Ujjwala Yojana (LPG access). Lower urban spending may also reflect the use of energy-efficient appliances and access to reliable power supply. Modern fuels, in place of biomass or kerosene, improve quality of life and are an example of expenditure substitution. The chart below shows the Monthly Per Capita Expenditure on Fuel & Light (in Rupees per 100 rupees).

The decline in spending on clothing, bedding and footwear is moderate and consistent with the transition from need-based consumption to periodic discretionary spending. Rising competition, fast fashion, and lower textile prices may also have contributed.

Rural India’s slightly higher or similar spending may indicate seasonal dependence and growing aspirations. The chart shows the monthly Per Capita Expenditure on Clothing, Bedding and footwear (in Rupees per 100 rupees)

The urban housing rent share rose significantly (₹4.46 to ₹6.58 per ₹100), aligning with urbanisation, rental stress, and migration to metropolitan hubs. Rural rent remains minimal due to widespread self-owned housing, informal tenure, or rent-free arrangements. The chart shows the monthly Per Capita Expenditure on Housing (Rent) (in Rupees per 100 rupees)

The miscellaneous category includes aspirational expenses such as health, education, conveyance, consumer services, and other similar costs. Its rising share, particularly in rural MPCE (from ₹21.87 to ₹35.82 per ₹100), reflects a broadening of the consumption basket.

This trend aligns with inclusive growth, deeper digital penetration, and echoes improved reach and quality of both public and market-based services. The chart shows the monthly Per Capita Expenditure on Miscellaneous (Health, education, conveyance, consumer services and other expenses) (in Rupees per 100 rupees)

Taken together, these trends reflect that society is undergoing an economic transition, with consumption patterns gradually shifting away from subsistence needs toward more aspirational and service-oriented spending.

The data for the charts were sourced from the Ministry of Statistics and Programme Implementation (MoS&PI) for the period 1999-2000 to 2023-24. The views expressed are personal. The writer is a Deputy Director with the Ministry.

Published – January 10, 2026 08:00 am IST

The Household Consumption Expenditure Survey (HCES) by the Ministry of Statistics and Programme Implementation (MoS&PI) captures spending pattern of Indian households across various consumption categories. Conducted every five years, the HCES provides granular estimates of Monthly Per Capita Expenditure (MPCE) for both rural and urban populations, covering a wide range of goods and services.

The survey rounds for 2022-23 and 2023-24 represent the first comprehensive update to MPCE data in over a decade, offering valuable insights into India’s shifting consumption landscape. These findings are central to revising poverty estimates, informing social sector policy, and understanding the lived realities of India’s expanding middle-income population.

This article examines long-term MPCE trends from 1999-2000 to 2023-24, with a focus on six key expenditure categories. In this analysis, MPCE is expressed as the proportional expenditure on an item for every ₹100 of total spending.

Decline in MPCE share on food and beverages for both urban (from ₹48 to ₹39 per ₹100) and rural areas (from ₹59 to ₹47 per ₹100) confirms Engel’s Law, which states that as real income rises, the proportion of income spent on food declines, even if absolute expenditure increases. The chart below shows the monthly per capita expenditure on food and beverages (in Rupees per 100 rupees)

Further, a fall in expenditure on cereals, alongside higher spending on fruits, eggs, fish, and processed foods, signals a shift from staple-heavy diets to more varied, protein-rich diets — albeit unequally.

Despite marginal increases, particularly in rural areas, spending on pan, tobacco, and other intoxicants remains a low share of MPCE, accounting for under ₹3.8 per ₹100 of spending.

From a public health perspective, the trend calls for targeted awareness programs in rural belts. The chart below shows the Monthly Per Capita Expenditure on Pan, Tobacco & Intoxicants (in Rupees per 100 rupees)

The reduction in per capita fuel spending reflects policy successes, such as Saubhagya (rural electrification) and PM Ujjwala Yojana (LPG access). Lower urban spending may also reflect the use of energy-efficient appliances and access to reliable power supply. Modern fuels, in place of biomass or kerosene, improve quality of life and are an example of expenditure substitution. The chart below shows the Monthly Per Capita Expenditure on Fuel & Light (in Rupees per 100 rupees).

The decline in spending on clothing, bedding and footwear is moderate and consistent with the transition from need-based consumption to periodic discretionary spending. Rising competition, fast fashion, and lower textile prices may also have contributed.

Rural India’s slightly higher or similar spending may indicate seasonal dependence and growing aspirations. The chart shows the monthly Per Capita Expenditure on Clothing, Bedding and footwear (in Rupees per 100 rupees)

The urban housing rent share rose significantly (₹4.46 to ₹6.58 per ₹100), aligning with urbanisation, rental stress, and migration to metropolitan hubs. Rural rent remains minimal due to widespread self-owned housing, informal tenure, or rent-free arrangements. The chart shows the monthly Per Capita Expenditure on Housing (Rent) (in Rupees per 100 rupees)

The miscellaneous category includes aspirational expenses such as health, education, conveyance, consumer services, and other similar costs. Its rising share, particularly in rural MPCE (from ₹21.87 to ₹35.82 per ₹100), reflects a broadening of the consumption basket.

This trend aligns with inclusive growth, deeper digital penetration, and echoes improved reach and quality of both public and market-based services. The chart shows the monthly Per Capita Expenditure on Miscellaneous (Health, education, conveyance, consumer services and other expenses) (in Rupees per 100 rupees)

Taken together, these trends reflect that society is undergoing an economic transition, with consumption patterns gradually shifting away from subsistence needs toward more aspirational and service-oriented spending.

The data for the charts were sourced from the Ministry of Statistics and Programme Implementation (MoS&PI) for the period 1999-2000 to 2023-24. The views expressed are personal. The writer is a Deputy Director with the Ministry.

Published – January 10, 2026 08:00 am IST

Consumption inequality in rural as well as urban areas declined during August 2023-July 2024 period as compared to a year ago, according to the latest Household Consumption Expenditure Survey released on Friday (December 27, 2024).

The Gini coefficient declined to 0.237 from 0.266 for rural areas and to 0.284 from 0.314 for urban areas during the period under review, a statement by Ministry of Statistics & Programme Implementation on the survey said.

The Gini coefficient statistically measures consumption inequality and wealth distribution within a society.

The “consumption inequality, both in rural and urban areas has declined from the level of 2022-23,” stated the Household Consumption Expenditure Survey (HCES) based on the fieldwork undertaken during August 2023 to July 2024.

The average MPCE (monthly per capital expenditure) in rural and urban India in 2023-24, without taking into account the social welfare schemes, has been estimated at ₹4,122 and ₹6,996 (at current prices), respectively.

According to the survey, the MPCE was ₹3,773 in rural areas and ₹6,459 in urban areas (at current prices) in 2022-23.

The estimates of MPCE of 2023-24 are based on the data collected from 2,61,953 households (1,54,357 in rural areas and 1,07,596 in urban areas) in the central sample spread over all states and Union Territories in the country.

Considering the imputed values of items received free of cost through various social welfare programmes, these estimates of MPCE become ₹4,247 and ₹7,078 respectively, for rural and urban areas (2023-2024).

In nominal prices, the average MPCE (without imputation) in 2023-24 increased by about 9% in rural areas and 8% in urban areas from the level of 2022-23.

The urban-rural gap in MPCE declined to 71% in 2022-23 from 84% in 2011-12.

It has further come down to 70% in 2023-24 that confirms sustained momentum of consumption growth in rural areas.

Consistent with the trend observed in HCES:2022-23, non-food items remain the major contributor to the household’s average monthly expenditure in 2023-24 with about 53 per cent and 60% share in MPCE in rural and urban areas, respectively.

Beverages, refreshments and processed food continue to have the major expenditure share in 2023-24 in the food items basket of the rural and urban households.

Conveyance, clothing, bedding & footwear, miscellaneous goods & entertainment and durable goods have major expenditure share in non-food expenditure of the households in both rural and urban areas.

Rent consisting of house rent, garage rent and hotel accommodation charges with about 7 per cent share is another major constituent of the urban households’ non-food expenditure.

Among states, MPCE is the highest in Sikkim (rural — ₹9,377 and urban — ₹13,927) and it is the lowest in Chhattisgarh (rural — ₹2,739 and urban – ₹4,927).

Among the union territories (UTs), MPCE is the highest in Chandigarh (rural – ₹8,857 and urban – ₹13,425), whereas it is the lowest in Dadra and Nagar Haveli and Daman and Diu (₹4,311) and Jammu and Kashmir (₹6,327) in rural and urban areas, respectively.

The rural-urban difference in average MPCE among states is the highest in Meghalaya (104 per cent) followed by Jharkhand (83 per cent) and Chhattisgarh (80%).

Average MPCE in 9 out of 18 major states is higher than the all-India average MPCE in both rural and urban areas.

Across all states and UTs, households spent more on non-food items with share of non-food items in average MPCE being 53 per cent and 60 per cent in rural and urban areas, respectively, the survey showed.

The major contributors in the non-food expenditure of the households in 2023-24 have been conveyance, clothing, bedding & footwear, miscellaneous goods & entertainment and durable goods.

Rent with a share of around 7% is another major constituent of households’ non-food expenditure in urban India, it stated.

As in 2022-23, beverages and processed food continues to be the major contributor in total consumption expenditure of food items in 2023-24, followed by milk & milk products and vegetables, it stated.

While Indians have diversified from cereals and pulses by spending more on nutritious options, that share pales in comparison to the amount spent on processed food.

The household consumption expenditure survey 2022-23 has confirmed the various changes in food consumption patterns that India has been witnessing over the past two decades. Indians have been spending more on processed food (including cooked meals purchased outside), beverages, and refreshments by reducing money spent on home-cooked food, which is prepared using cereals, pulses, and vegetables. While there are subtle variations in rural and urban areas, the pattern in general is valid across both regions.

Table 1 | The table shows the share of monthly per capita consumption expenditure (MPCE) in urban and rural areas across various periods. Figures in %.

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In urban areas, in 1999-2000, cereals formed over 12% of expenses, followed by vegetables (5%), and grams and pulses (3%). Only 6.4% was spent on processed food. As of 2022-23, cereals formed only 4.5% of expenses, followed by vegetables (3.8%), and grams and pulses (1.4%). In contrast, 10.5% was spent on processed food. The trend in rural areas was even sharper, with the share spent on cereals reducing sharply from more than 22% to 7% and the share of processed food more than doubling from 4.2% to 9.4%.

Interestingly, the amount spent on fruits has risen significantly. There has also been a considerable increase in spending on eggs, fish, and meat. So, while Indians have diversified from cereals and pulses by spending more on nutritious options such as fruits and meat, that share pales in comparison to the amount spent on processed food. Notably, the share of milk, edible oil, and spices in total expenses has remained almost the same over the years. These trends are true for rural and urban areas.

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These trends pertain only to the amount spent on food in total household expenses. It is important to note that the amount spent on food itself has been reducing over the years, which means that money is being spent on other purchases/activities. The 2022-23 data too confirm this trend. Both in rural and urban areas, the share of food in total expenses reduced and that in non-food expenses increased in 2022-23 compared with 2011-12 (Chart 2).

Chart 2 | The chart shows the food and non-food’s share in total expenses in 2022-23 and 2011-12 across rural and urban areas.

The second part of Table 1 shows trends pertaining to the amount spent on items other than food as a share of the total expenses. The amount spent on conveyance, especially work-related, shot up in 2022-23 in rural and urban areas. This is due to the incessant increase in the price of petrol and diesel in recent years. It is important to note that the ‘fuel and light’ component of the expenses has decreased because they do not include petrol and diesel used for conveyance. This component is majorly a measure of electricity, LPG and kerosene charges.

Also read | Data | Cost of preparing meals at home rose by 65% in five years, wages by just 28%-37%

The share spent on consumer services other than conveyance, such as house help, tailors, laundry, telecom, and the Internet has also gone up, whereas the share spent on clothing, bedding, and footwear has decreased. Notably, the share spent on durable goods such as televisions, handbags, utensils, washing machines, refrigerators, laptops, cars, scooters, and mobile phones, which had been gradually increasing, recorded sharp increases in 2022-23. The amount spent on sin goods has also increased, possibly due to higher taxes. These trends are true for rural and urban areas. However, while urban Indians continued to spend a significant amount on rent, rural Indians spent an insignificant share on that.

Chart 3 | The chart shows MPCE of urban and rural Indians in 2022-23 and 2011-12 in ₹.

The MPCE of urban Indians continued to be much higher than their rural counterparts, but the difference reduced in 2022-23 compared to 2011-12 (Chart 3).

Source: Household Consumption Expenditure Survey 2022-23 and 2011-12

rebecca.varghese@thehindu.co.in and vignesh.r@thehindu.co.in

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