Household spending doubles in a decade. What about income?

 

Household spending doubles in a decade. What about income?

A surge in household spending The National Sample Survey Office (NSSO) has published a comprehensive survey, indicating a substantial rise in monthly household consumer spending in India from 2011-12 to 2022-23. The per capita monthly household expenditure (MPCE) witnessed a significant increase in both rural and urban areas during this period. Double in a decade According to the NSSO, the per capita monthly household expenditure rose from Rs 1,430 in rural areas and Rs 2,630 in urban areas in 2011-12 to Rs 3,860 and Rs 6,521, respectively, in 2022-23, at current prices. The data, derived from a survey conducted from August 2022 to July 2023, covered 2,61,746 households across the country. Inclusive assessment The survey considered the value of items received and consumed by households free of cost through various social welfare programs. This included essentials such as food grains, edible oil, salt, and sugar and non-essential items like laptops, tablets, mobile phones, bicycles, motorcycles, clothing, and footwear. Why it matters The twofold increase in monthly per capita expenditure not only reflects enhanced household income but also boosts consumer confidence, influencing market demands and policy planning. In the face of challenges posed by the Covid-19 pandemic, India's robust consumer spending underscores the strength and resilience of its economy, fueled by a population of over 1.3 billion people with immense domestic demand potential. Driving forces India's consumer spending surge is attributed to factors such as the rapid expansion of the digital economy, growth in the e-commerce sector, and the rise of online education and entertainment platforms. Government initiatives, including the Atmanirbhar Bharat campaign, the production-linked incentive (PLI) scheme, and the Pradhan Mantri Garib Kalyan Yojana, have also played a role in boosting consumer confidence and spending