Urban-rural spending gap narrows in FY24

New Delhi: Spending inequality declined between rural and urban areas as well as among social categories in 2023-24, according to the Household Consumption Expenditure Survey released on Thursday. Non-food items remained the primary driver of average monthly expenditure.

The rural-urban spending gap narrowed to 69.7% in 2023-24 from 71.2% in 2022-23. The spending gap was 83.9% in 2011-12.

In rural areas, the average monthly per capita consumption expenditure (MPCE) increased by 9.2% to ₹4,122 in 2023-24 from ₹3,773 in the year before. In urban areas, the increase was 8.3% to ₹6,996.


The survey was conducted by the ministry of statistics and programme implementation (MoSPI) between August 2023 and July 2024.

While the share of non-food items declined marginally in 2023-24 from the year before, it accounted for the majority of the monthly expenses.

In rural areas, the share of food items in MPCE rose slightly to 47% in 2023-24 from 46.4% in 2022-23. It was 52.9% in 2011-12. In urban areas, this share rose to 39.7% from 39.2% in 2022-23. The share was 42.6% in 2011-12.

In contrast, the share of non-food items in average MPCE in rural areas marginally declined to 53% in 2023-24 from 53.6% in the year before. It was 47.1% in 2011-12. In urban areas, it fell marginally to 60.3% from 60.8% in 2022-23. In 2011-12, the share was 57.4%.

Analysis showed that the spending growth between 2022-23 and 2023-24 was higher among scheduled tribes, scheduled castes and other backward classes compared to others across both urban and rural areas.

Further, the increase in spending by casual labour and self-employed in urban areas was higher than regular wage workers between 2022-23 and 2023-24.

In rural areas, casual labour in agriculture recorded a higher rise in spending compared to casual labour in non-agriculture. Similarly, self-employed people in agriculture experienced a greater increase than those in non-agriculture.