Household Expenditure Survey (2023-24)
Context:
The latest Household Consumption Expenditure Survey (HCES) 2023-24 highlights that conveyance accounted for the highest share of Indian households’ average monthly expenditures on non-food items. Experts attribute this trend to increasing mobility, rising fuel prices, and inadequate public transport.
The Household Consumption Expenditure Survey (HCES) is a survey conducted by the Ministry of Statistics and Programme Implementation (MoSPI) in India. It aims to collect data on the consumption and expenditure of households on goods and services. This survey is crucial for assessing trends in economic well-being, measuring poverty, inequality, and social exclusion, and updating the basket of consumer goods and services used for calculating the Consumer Price Index (CPI).
Major Findings on Household Expenditure
- Conveyance had the highest share of non-food expenses in both rural and urban households.
- Other significant expenditure categories included durables, fuel & light, rent, and clothing & bedding.
Share of Expenditures on Commuting
- Rural Areas: The share of average monthly per capita consumption expenditure (MPCE) on commuting was 7.6%. Other major expenditures included durables (6.48%), fuel and light (6.11%), and clothing and bedding (5.67%).
- Urban Areas: The share of MPCE on commuting was 8.5%. Other key expenditures were durables (6.8%) and rent (6.6%).
State-wise Observations on Commuting Expenditures
- Rural Areas: Conveyance is the largest expenditure among non-food items in 16 states and 3 Union Territories. Highest share of MPCE on commuting in Kerala (11.38%), followed by Goa (11.14%), Tamil Nadu (10.57%), Punjab (9.5%), and Maharashtra (9.3%).
- Urban Areas: Conveyance is the top expenditure in 16 states and 4 Union Territories. Highest share of MPCE on commuting in Manipur (10.96%), followed by Tamil Nadu (9.91%), Goa (9.91%), Rajasthan (9.59%), and Gujarat (9.43%).
Factors Driving High Spending on Conveyance
- Increased mobility: More people are commuting between villages, towns, and cities for work.
- Rising fuel costs: Higher fuel prices have significantly increased transportation expenses.
- Poor public transport: Limited public transport options in many states force reliance on private vehicles.
