Poverty and inequality
The National Sample Survey Office (NSSO), Ministry of Statistics and Programme Implementation has released the key indicators of household consumer expenditure in India, generated from the data collected during July 2011–June 2012 in its 68th round survey. The Central Sample consisted of 7,469 villages in rural areas and 5,268 urban blocks spread over all States and Union Territories.
Some salient findings of the report titled Key Indicators of Household Consumer Expenditure in India: 68th round NSS (2011-12) relating to monthly per capita expenditure (MPCE) based on modified mixed reference period (MMRP)** are as follows (click here to know more):
• The all-India estimate of average MPCE was around Rs.1430 for rural India and about Rs. 2630 for urban India. Thus average urban MPCE was about 84% higher than average rural MPCE for the country as a whole, though there were wide variations in this differential across States.
• The bottom 5% of the population had an average monthly per capita expenditure of Rs. 521.44 in rural areas and Rs. 700.50 in urban areas.
• The top 5% of the population had an average monthly per capita expenditure of Rs. 4481.18 in rural areas and Rs. 10281.84 in urban areas.
• For rural India, the 5th percentile of the MPCE distribution was estimated as Rs. 616 and the 10th percentile as Rs. 710. The median MPCE was Rs. 1198. Only about 10% of the rural population reported household MPCE above Rs. 2296 and only 5% reported MPCE above Rs. 2886.
• For urban India, the 5th percentile of the MPCE distribution was Rs. 827 and the 10th percentile, Rs. 983. The median MPCE was Rs. 2019. Only about 10% of the urban population reported household MPCE above Rs. 4610 and only 5% reported MPCE above Rs. 6383.
• For the average rural Indian, food accounted for 52.9% of the value of consumption during 2011-12. This included 10.8% for cereals and cereal substitutes, 8% for milk and milk products, 7.9% on beverages, refreshments and processed food, and 6.6% on vegetables. Among non-food item categories, fuel and light for household purposes (excluding transportation) accounted for 8%, clothing and footwear for 7%, medical expenses for 6.7%, education for 3.5%, conveyance for 4.2%, other consumer services (excl. conveyance) for 4%, and consumer durables for 4.5%.
• For the average urban Indian, 42.6% of the value of household consumption was accounted for by food, including 9% by beverages, refreshments and processed food, 7% by milk and milk products, and 6.7% by cereals and cereal substitutes. Education accounted for 6.9%, fuel and light for 6.7%, conveyance for 6.5%, and clothing & footwear for 6.4%.
** Note: Using Schedule 1.0 Type 2, Monthly per Capita Consumer Expenditure with a mixed reference period where a reference period of 365 days was used for all items of consumer expenditure in Category I, a reference period of 7 days was used for all items of consumer expenditure in Category II and a reference period of 30 days was used for all items of consumer expenditure in Category III.