Southern states steal the show in monthly household spending: Survey

Kerala, Telangana, and Tamil Nadu lead India in household consumption, surpassing the national average in spending

Southern India is leading in monthly per capita consumption expenditure (MPCE) with the five states of Kerala, Tamil Nadu, Telangana, Andhra Pradesh, and Karnataka significantly surpassing the national average, according to the Household Consumption Expenditure Survey 2023-24, released on Friday.

 

Conducted between August 2023 and July 2024, the survey — based on a sample of 261,953 households (154,357 in rural and 107,596 in urban areas) — offers insights into consumption patterns, helping assess poverty, inequality, and overall economic health.

 

Kerala leads in household spending 

In Kerala, rural households spend Rs 6,611 per month, while urban households spend Rs 7,834, compared with the national averages of Rs 4,122, and Rs 6,996, respectively. Tamil Nadu reports Rs 5,872 in rural and Rs 8,325 in urban areas, with Telangana at Rs 5,675 and Rs 9,131.

 

 

Andhra Pradesh recorded the highest MPCE in the region, with rural households spending Rs 6,107 and urban households Rs 9,877. Karnataka, with Rs 5,068 in rural areas and Rs 8,169 in urban zones, completes the top five.

 

Other Indian states 

Industrialised states like Gujarat and Maharashtra align closely with the national average, while populous northern states like Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan lag. West Bengal also falls short of the average in both rural and urban sectors.

 

The survey highlighted stark differences across the country, with Sikkim recording the highest MPCE — rural households spending Rs 9,377 and urban households Rs 13,927. On the other hand, Chhattisgarh reported the lowest MPCE, with Rs 2,739 in rural areas and Rs 4,927 in urban areas.

 

The report also pointed out notable rural-urban disparities, with Meghalaya showing the largest gap at 104 per cent, followed by Jharkhand at 83 per cent and Chhattisgarh at 80 per cent. Across all states, nine had MPCE levels higher than the national average in both rural and urban categories.

 

Consumption pattern 

The data indicates a slight increase in spending on cereals, with rural areas allocating 4.99 per cent of their MPCE and urban areas 3.76 per cent in 2023–24, up from 4.91 per cent and 3.64 per cent in 2022–23. This comes despite a small decline in average monthly per capita cereal consumption, which dropped from 9.61 kg to 9.35 kg in rural areas and from 8.05 kg to 8.02 kg in urban areas during the same period.

 

Expenditures on other food items, including beverages, pulses, vegetables, fruits, eggs, meat, and spices, increased in both rural and urban sectors.

 

On the other hand, rural households reduced their spending on non-food items like medical care, education, rent, fuel, and durable goods. Urban households also cut back on spending on items such as pan, tobacco, fuel, medical care, transport, durable goods, and consumer services.