Overview
The Household Consumption Expenditure Survey (HCES) 2023–24 is conducted by the under the Ministry of Statistics and Programme Implementation.
The survey provides detailed data on household consumption patterns across rural and urban India. It is a crucial dataset for poverty estimation, inflation measurement, and policy planning.
Background
- The last comparable large-scale consumption survey was conducted in 2011–12.
- The 2017–18 survey was not officially released.
- The 2022–23 survey marked the resumption of consumption data collection, followed by the 2023–24 round for improved comparability and trend analysis.
Objectives
- Estimate average monthly per capita consumption expenditure (MPCE).
- Analyse changes in consumption patterns.
- Provide data inputs for poverty estimation.
- Support revision of Consumer Price Index (CPI) weights.
- Inform welfare and subsidy targeting.
Key Features
Coverage
- Both rural and urban households.
- Large representative national sample.
Data Collected
- Food expenditure
- Non-food expenditure
- Durable goods
- Services
- Imputed values of free/subsidised goods
Survey Methodology
- Uses a mixed recall period approach.
- Combines short recall and long recall periods for different consumption items.
Major Findings (Broad Trends)
Rising Consumption Levels
- Increase in average MPCE in both rural and urban areas compared to previous rounds.
Decline in Food Share
- Share of food in total expenditure has declined, indicating diversification of spending.
Increase in Non-Food Spending
- Growth in spending on:
- Education
- Health
- Transport
- Communication
- Consumer durables
Rural–Urban Gap
- Urban MPCE remains higher than rural MPCE.
- However, the gap shows signs of gradual narrowing.
Policy Significance
Poverty Estimation
- Forms the basis for recalculating poverty lines.
- Influences welfare targeting and subsidy design.
Inflation Measurement
- Used to update CPI basket weights.
- Reflects current consumption patterns.
Social Sector Planning
- Helps assess impact of welfare schemes.
- Supports food security and nutrition policy.
Fiscal and Development Planning
- Assists in evaluating inequality trends.
- Provides evidence for inclusive growth strategies.
Challenges
- Ensuring comparability with earlier surveys.
- Capturing informal sector consumption accurately.
- Accounting for free welfare transfers in expenditure estimates.
Conclusion
The Household Consumption Expenditure Survey 2023–24 is a critical statistical exercise that offers updated insights into India’s consumption dynamics. It supports poverty assessment, inflation tracking, and social policy formulation, making it central to evidence-based economic governance.
