About the Household Consumption Expenditure Survey (HCES)

- The HCES is a significant survey conducted every five years by the National Statistical Office (NSO).

- It predominantly collects data on goods and services consumed by households across India.

- This data contributes to the calculation of macroeconomic indicators like Gross Domestic Product (GDP), poverty rates, and Consumer Price Inflation (CPI).

Significance of the Recent Household Consumption Expenditure Survey

- The survey was aimed at assessing the Monthly Per Capita Consumer Expenditure (MPCE) and examining the distribution of households and individuals across different MPCE categories.

- Recent findings indicate a significant reduction in poverty levels to about 5% in India.

- Such statistics provide valuable insights into the living standards and economic conditions of the Indian population.

Salient Takeaways from the Recent Survey

- The survey observed an increase of 33.5% and 40.42% in MPCE in urban and rural sectors, respectively.

- Food expenditure comprised 46% and 39% of total expenditure for rural and urban households, respectively.

- There exists a significant gap between the MPCE of the poorest and richest 5% of India's population.

- Sikkim records the highest MPCE among states, while Meghalaya displays the highest rural-urban MPCE disparity.

- Among Union Territories, Chandigarh tops the list in terms of MPCE, while Ladakh and Lakshadweep have the lowest figures.

Understanding Food Expenditure Trends

- The proportion of food expenditure has steadily decreased from 1999-2000 onwards, while non-food expenditure has risen correspondingly.

- This shift signifies enhanced incomes, greater spending on healthcare, education, clothing, conveyance, and entertainment.

- Within food consumption expenditure, the share of cereals and pulses has reduced over time.

National Statistical Office (NSO) – Driving Core Statistical Activities

- NSO was established in 2019 by merging the Central Statistical Office (CSO) and the National Sample Survey Office (NSSO).

- C. Rangarajan Committee first proposed NSO's establishment.

- It operates under the Ministry of Statistics and Programme Implementation (MoSPI).

- Its primary role is to collect, compile, and disseminate reliable and pertinent statistical data.