Household Consumption in a Changing India: Expenditure Patterns, Disparities, and Inequalities

Abstract

This study examines the composition and distribution of monthly per capita consumption expenditure (MPCE) across Indian states and union territories using the Household Consumption Expenditure Survey (HCES) 2022-23. Expenditure is reported for three questionnaire-defined groups: food (FDQ), consumables and services (CSQ), and durable items (DGQ). The DGQ classification includes clothing, bedding and footwear as well as durable goods, rather than durable goods alone. Rural and urban MPCE, expenditure shares and separately reported category-specific Gini point estimates are compared. All-India MPCE is Rs. 3,773 in rural areas and Rs. 6,459 in urban areas, excluding additional imputation for selected free social transfers. Food accounts for 46.38% of rural and 39.17% of urban MPCE; CSQ accounts for 40.62% and 48.25%, respectively; and DGQ expenditure accounts for 13.00% and 12.58%. At the national level, urban per capita expenditure exceeds rural expenditure in each group, although the rural food budget share is larger. In the available category-specific Gini tabulations, food expenditure has the lowest concentration, followed by CSQ and DGQ spending in both sectors; methodological records necessary to reproduce these Gini estimates are not available. The descriptive results distinguish within-population expenditure inequality from differences between geographical averages and do not establish causal determinants. Intertemporal interpretation is limited by differences in survey design and recall conventions.