On Saturday, the government released all India household consumption expenditure survey carried out between August 2022 and July 2023. The new survey was released after an interval of 11 years. This survey will be pivotal in reviewing critical economic indicators like GDP, CPI, Poverty levels, etc. The household consumption expenditure survey is designed to collect details on household consumption of goods and services and is conducted by the National Statistical Office every five years. The survey data for 2017-2018 was not published due to data quality issues.
BASE YEAR-
NSO decided to conduct two consecutive surveys during 2020-21 and 2021-22 to facilitate a decision on the appropriate period for revising the base year. However, due to the entry of COVID-19, the plan was toppled. The survey took place between August 2022 and July 2023.
The current base year is 2012.
This quinquennial survey is conducted on a large scale compared to yearly surveys conducted by NSSO, which helps gain a more extensive and correct picture. The first quinquennial household expenditure survey was published in 1972-1973(27th).
SURVEY AREA –
The data was gathered from 8,723 villages and 6,115 urban blocks spread over India, covering 2,61,746 households. Some unreachable villages in Andamans and Nicobar Islands were avoided due to the difficulty of accessing them.
SURVEY –
Simple Random Sampling Without Replacement (SRSWOR) approach is utilised for choosing the samples. Simple random sampling (SRS) is an approach of selecting a sample comprising of n a number of sampling units out of the population having N number of sampling units such that every sampling unit has an equal chance of being chosen and the sampling units are selected without replacement because the units, once chosen, are not placed back in the population.
A total of 18 households with proportional representation from the three groups have been selected to confirm the proper representation of households. The basket consists of Food, Consumables and Services, and Durable goods. Three separate questionnaires were prepared: A food items questionnaire, a Durable items questionnaire, and a consumables and services items questionnaire, covering the three categories designed and asked in the selected households in three separate monthly visits in a quarter. Another questionnaire, HCQ, has been used to collect details on household characteristics and demographic particulars of the members of the households.
All possible six sequencing of the three questionnaires have been used in the survey to eliminate preconceptions.
BRIEF ACCOUNT OF THE MODIFICATIONS MADE IN THE CURRENT SURVEY –
An updated questionnaire with 405 items is used. The previous survey ( HCES:2011-12 (NSS 68th round)) had 347 items.
Three separate questionnaires are used instead of a single questionnaire.
Three separate monthly visits in a quarter are employed to avoid any bias.
Instead of the pen-and-paper personal interview (PAPI) method, the computer-assisted personal interview (CAPI) method has been used in the current survey.
ALL-INDIA MONTHLY PER CAPITA CONSUMPTION EXPENDITURE –
The lowermost 5% of India’s rural population has an average MPCE of INR. 1,373.
The lowermost 5% of India’s urban population has an average MPCE of INR. 2,001.
The uppermost 5% of India’s rural population has an average MPCE of INR. 10,501.
The uppermost 5% of India’s urban population has an average MPCE of INR. 20,824.
MPCE is highest in Sikkim for both rural and urban areas (Rural – INR. 7,731 and Urban – INR. 12,105).
MPCE is lowest in Chattisgarh for rural and urban areas (Rural – INR. 2,466 and Urban – INR. 4,483).
The rural-urban disparity in average MPCE among the states is the highest in Meghalaya (83%), followed by Chhattisgarh (82%).
In the category of union territories, MPCE is the highest in Chandigarh (Rural – INR. 7,467 and Urban – INR. 12,575). In contrast, it is the lowest in Ladakh (INR. 4,035) and Lakshadweep (INR. 5,475) for rural and urban areas, respectively.
TRENDS IN CONSUMPTION –
The percentage share of consumption of cereals has decreased from 22.23%(1999-2000) in rural areas to 4.9%(current survey). The urban regions too displayed a similar trend. The percentage share of consumption of cereals has decreased from 12.39%(1999-2000) in rural areas to 3.64%(current survey).
The percentage share of food has decreased from 59.4%(1999-2000) in rural areas to 46.38%(current survey). Only 2009-2010 is an exception, which displayed an increase compared to 2004-2005.
The percentage share of food has decreased from 48.06%(1999-2000) in rural areas to 39.17%(current survey). Here, 2009-2010 is also an exception. During this period, the survey displayed an increase compared to 2004-2005.
In the food group beverages, refreshments, and processed food holds the highest share, followed by milk and milk products. Both rural and urban regions showed similar trends.
In the Non-food group (rural region), conveyance, followed by medical, holds the highest share. In the urban area, conveyances have the highest share, followed by durable goods.
