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4. NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
CONTENTS
Chapter One Introduction 1
Chapter Two Features of the Consumer Expenditure Survey 4
Chapter Three Key Findings of NSS 66th
Round Survey on Household
Consumer Expenditure
10
Detailed Tables 21
Appendix A Concepts and Definitions A-1 - A-4
Appendix B Sample Design and Estimation Procedure B-1 - B-9
Appendix C Population Projections C-1
Appendix D Schedule 1.0 D-1 - D-42
Detailed Tables
1A-R, 1A-U Per capita food, non-food & total expenditure and upper class limit for each
decile class of MPCEURP all States and UTs
21 - 44
1B-R, 1B-U Per capita food, non-food & total expenditure and upper class limit for each
decile class of MPCEMRP all States and UTs
45 - 68
1C-R, 1C-U Per capita food, non-food & total expenditure and upper class limit for each
decile class of MPCEMMRP all States and UTs
69 - 92
2A Break-up of average MPCEURP (absolute & percentage) by broad item group
all-India
93
2B Break-up of average MPCEMRP (absolute & percentage) by broad item group
all-India
94
2C Break-up of average MPCEMMRP (absolute & percentage) by broad item
group all-India
95
3R, 3U Monthly per capita quantity and value of consumption for food items,
all-India: MMRP estimates
96 – 103
4R, 4U Monthly per capita quantity and value of consumption for non-food items,
all-India: MMRP estimates
104 - 115
5. NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
Chapter One
Introduction
1.1 Background
1.1.1 The National Sample Survey Office (NSSO) conducts nationwide household consumer
expenditure surveys at regular intervals as part of its “rounds”, each round normally of a
year’s duration. The NSS surveys are conducted through interviews of a random sample of
households selected through a scientific design and cover practically the entire geographical
area of the country.
1.1.2 The household consumer expenditure survey (CES) is generally covered as one of the
main subjects of the NSS survey at quinquennial intervals. This provides a series of CES’s.
The 66th
round survey (July 2009 - June 2010) was the eighth such survey of this
quinquennial series, the seventh having been conducted during the 61st
round (July 2004 -
June 2005). The key indicators on household consumption in India during 2009-10 based on
data collected through the 66th
round of NSS are presented here.
1.2 Objective of the survey
1.2.1 The NSS consumer expenditure survey aims at generating estimates of household
monthly per capita consumer expenditure (MPCE) and its distribution separately for the rural
and urban sectors of the country, for States and Union Territories, and for different socio-
economic groups. These indicators are amongst the most important measures of the level of
living of the respective domains of the population. The distribution of MPCE highlights the
differences in level of living of the different segments of the population and is an effective
tool to study the prevalence of poverty and inequality. These numbers enable the apex
planning and decision-making process to allocate the nation’s resources among sectors,
regions, and socio-economic groups, and assess the “inclusiveness” of economic growth.
1.2.2 Besides measuring the household consumption level and its pattern, the CES has
another important use. To work out consumer price indices (CPIs) which measure the general
rise in consumer prices, one needs to know not only the price rise for each commodity group
but also the budget shares of different commodity groups (used as weights). The budget
shares as revealed by the NSS CES are being used to prepare the weighing diagram for
official of CPIs. More extensive use of NSS CES data is planned to have a weighing diagram
that uses a finer commodity classification, to prepare CPIs separately for rural and urban and
at sub-national level.
1.2.3 Apart from these major uses of the CES, the food (quantity) consumption data are used
to study the level of nutrition of different regions and disparities therein, and in studying
demand and supply of commodities. The budget share of a commodity at different MPCE
levels facilitates the compilation of consumption elasticity or responsiveness of demand.
6. 2 Chapter One
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
1.3 Genesis of the CES
1.3.1 The quinquennial series: Beginning from the first round (1950-51) of the National
Sample Survey (NSS), data on household consumer expenditure were collected in every round
up to the 28th
(1973-74). After the 26th
round of the survey, the Governing Council of NSSO
decided that the surveys on consumer expenditure and employment-unemployment situation
might be undertaken together on a large scale once in every five years. Accordingly,
"quinquennial" surveys on consumer expenditure and employment-unemployment surveys
were conducted in the 27th
, 32nd
, 38th
, 43rd
, 50th
, 55th
, 61st
and 66th
rounds of NSS, at roughly
5-year intervals.
1.3.2 The annual series: In the mid-80’s, the need for an annual series of data on consumer
expenditure began to be felt by planners and research workers. The Governing Council
therefore decided (i) that the quinquennial consumer expenditure-cum-employment surveys
would be carried on as before, and (ii) that every other round of NSS, starting from the 42nd
(1986-87), would include a smaller-scale consumer expenditure survey with 2 (increased to 4
from 1993 onwards) sample households per sample village/block with a slightly abridged
schedule of enquiry. For two decades thereafter, every round of NSS included either a CES of
the quinquennial series or a CES of the annual series. However, in two recent rounds of NSS –
the 65th
and the 67th
– there was no survey of consumer expenditure.
1.4 Reports of the 66th
round CES
1.4.1 The results of NSS rounds are released in reports based on comprehensive tabulation
of subject parameters and indicators in various cross-classifications generated from the
Central sample1
data. Corresponding to NSS 66th
round quinquennial survey on household
consumer expenditure, the results are planned for release in seven reports. The tentative titles
of these reports are:
1. Level and Pattern of Consumer Expenditure, 2009-10
2. Household Consumption of Various Goods and Services in India, 2009-10
3. Public Distribution System and Other Sources of Household Consumption, 2009-10
4. Energy Sources of Indian Households for Cooking and Lighting, 2009-10
5. Nutritional Intake in India, 2009-10
6. Household Consumer Expenditure among Socio-Economic Groups, 2009-10
7. Perceived Adequacy of Food Consumption in Indian Households, 2009-10
1.5 Contents of this document
1.5.1 This document brings out the key results of NSS 66th
round within a year of
completion of the field work for use in decision support, policy inferences and salient
analysis. It contains three chapters and four appendices. Following the present introductory
chapter (Chapter One), Chapter Two outlines the features of the Consumer Expenditure
Survey along with its conceptual framework and the architecture of the key indicators from
1
Refer to Chapter Two, paragraph 2.2.3.1.
7. Chapter One 3
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
the 66th
round CES. A brief summary of the information contained in the key indicators is
presented in Chapter Three, followed by the State/UT and all-India tables of key indicators.
Appendix A contains the basic definitions and procedures followed in the survey and in this
document other than those discussed in Chapter Two. Appendix B gives details of the sample
design and estimation procedure followed. In order to facilitate computation of the absolute
figures of aggregated consumption in the population domain, the projected population at the
mid-year reference 1st
January 2010 based on the population projections by the Registrar-
General of India are provided in Appendix C. Appendix D consists of the schedules of
enquiry (Schedule 1.0, Type 1 and Type 2) that were canvassed in the surveyed households.
1.5.2 The indicators presented in this document (separately for MPCEURP, MPCEMRP and
MPCEMMRP)2
are
A. State-sectorwise and all-India-sectorwise
• Deciles3
(upper limits of decile classes) of the distribution of population by MPCE
• Average MPCE by decile class of MPCE
• Per capita food expenditure by decile class of MPCE
• Per capita non-food expenditure by decile class of MPCE
B. All-India, sectorwise
• Break-up of average MPCE (absolute and percentage) by broad item group (14 groups
of food items and 18 groups of non-food items)
• Estimates of itemwise quantity4
and value of per capita consumption
1.5.3 Estimates of per capita monthly expenditure on food, non-food and total expenditure are
provided separately for rural and urban sectors at the state level as well as for all-India across
decile classes of MPCE. However, break-up of average MPCE by broad item group of food and
non-food items, and itemwise estimates of quantity and value of per capita consumption are
given at the all-India level.
1.5.4 The estimates of key indicators of household consumer expenditure are presented here
for all-India and for the States and UTs. The estimates of MPCEs are ratios and are expected
to be reasonably robust at national level and for larger States. While using the estimates for
smaller States, it may be kept in view that the sample for them may not be large enough for
getting sufficiently reliable estimates.
2
These are the three different estimates of MPCE generated by the 66th
round consumer expenditure survey.
They are explained in detail in Chapter Two, Section 2.5.
3
Deciles and decile classes of the MPCE distribution are explained in Appendix A, paragraph 1.6, and also in
Chapter Three, paragraph 3.1.3.
4
Quantity estimates are provided for all items for which data on quantity consumed was collected.
8. NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
Chapter Two
Features of the consumer expenditure survey
2.1 Schedules of enquiry
2.1.1 The household consumer expenditure schedule (“Schedule 1.0”) used for the survey
collected information on quantity5
and value of household consumption. To minimise recall
errors, a very detailed item classification was, as usual, adopted to collect information,
including 142 items of food, 15 items of energy (fuel, light and household appliances), 28
items of clothing, bedding and footwear, 19 items of educational and medical expenses, 51
items of durable goods, and 89 other items. The schedule also collected some other
particulars of each household member, such as age, sex and educational level.
2.1.2 The schedules of enquiry used were of two types. The two types had the same item
break-up but differed in reference periods used for collection of consumption data. Schedule
Type 1, as far as reference periods were concerned, was a repeat of the schedule used in most
quinquennial rounds. For certain categories of relatively infrequently purchased items,
including clothing and consumer durables, it collected information on consumption during
the last 30 days and the last 365 days. For other categories, including all food and fuel and
consumer services, it used a 30-days reference period. Schedule Type 2 used ‘last 365 days’
(only) for the infrequently purchased categories, ‘last 7 days’ for some categories of food
items, as well as pan, tobacco and intoxicants, and ‘last 30 days’ for other food items, fuel,
and the rest. This was in line with the recommendations of an Expert Group that had been
formed for the purpose of suggesting the most suitable reference period for each item of
consumption6
. The differences (in reference period) between Schedule Types 1 and 2 are
shown in Table T1.
Table T1: Reference periods used for collection of consumption data in Schedule 1.0, Type 1 and Type 2
Cate-
gory
Item groups
Reference period for
Schedule Type 1 Schedule Type 2
I Clothing, bedding, footwear, education, medical
(institutional), durable goods
‘Last 30 days’
and ‘Last 365
days’
Last 365 days
II Edible oil; egg, fish & meat; vegetables, fruits, spices,
beverages and processed foods; pan, tobacco & intoxicants
Last 30 days Last 7 days
III All other food, fuel and light, miscellaneous goods and
services including non-institutional medical; rents and taxes
Last 30 days Last 30 days
5
For education, medical care, and some goods and services listed in the schedule as “miscellaneous goods and
services”, no data on quantity of consumption are collected in the NSS CES’s.
6
See NSS Report no. 475; entitled “Results of a Pilot Survey on Suitability of Different Reference Periods for
Measuring Household Consumption”.
9. Chapter Two 5
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
2.1.3 Schedule Type 1 was canvassed in one half of the sample households and Schedule
Type 2 was canvassed in the other half7
.
2.2 Scope and coverage
2.2.1 Geographical coverage: The survey covered the whole of the Indian Union except (i)
(ii) interior villages of Nagaland situated beyond five kilometres of the bus route and (iii)
villages in Andaman and Nicobar Islands which remain inaccessible throughout the year.
However, although planned, no sample could actually be surveyed in the districts of Leh
(Ladakh), Kargil and Poonch of Jammu & Kashmir by NSSO.
2.2.2 Population coverage: The following rules were followed:
1. Floating population, i.e., persons without any normal residence, was excluded. But
persons residing in open space, roadside shelter, under a bridge, etc., more or less
regularly in the same place were covered.
2. Foreign nationals were excluded, as well as their domestic servants, if by definition
the latter belonged to the foreign national's household (see Appendix B for definition
of household). A foreign national who had become an Indian citizen for all practical
purposes was, however, covered.
3. Persons residing in barracks of military and paramilitary forces (like police, BSF etc.)
were kept outside the survey coverage. However, the civilian population residing in
their neighbourhood, including the family quarters of service personnel, was covered.
4. Orphanages, rescue homes, ashrams and vagrant houses were outside the survey
coverage. However, the persons staying in old age homes, the students staying in
ashram/hostels and the residential staff (other than monks/nuns) of these ashrams
were covered. Although orphans living in orphanages were excluded, the persons
looking after them and staying there were covered. Convicted prisoners undergoing
sentence were outside the coverage of the survey.
2.2.3 Sample size
2.2.3.1 First-stage units: As is usual in the regular NSS rounds, most States and Union
Territories participated in the survey: a “State sample” was surveyed by State Government
officials in addition to the “Central sample” surveyed by NSSO. For rural India, 7,524
villages formed the Central sample for this round. Of these, 7,428 villages were ultimately
surveyed. In the urban sector, the allocation for the Central sample was 5,284 blocks, of
which 5,263 were surveyed. This document is based on the estimates obtained from the
Central sample only.
2.2.3.2 Second-stage units: For the consumer expenditure survey, from each sample village
and urban block, two samples of 8 households each were selected for canvassing Schedule
7
There could be a very few cases where in the same household, both Type 1 and Type 2 schedules of Schedule
1.0 were canvassed due to some special situations while conducting actual survey in the field.
10. 6 Chapter Two
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
Type 1 and Schedule Type 2. While selecting the households in each selected first-stage unit,
the second-stage stratification of households is in-built in the sample design. The features of
the sample design are given in Appendix C.
Table T2: Number of villages/blocks surveyed and number of households surveyed for Schedule 1.0
Type 1 and Type 2: NSS 66th
round, Central sample
State/UT
no. of fsu’s
(villages/blocks)
surveyed
no. of sample households
Sch. Type 1 Sch. Type 2
rural urban rural urban
rural +
urban
rural urban
rural +
urban
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Andhra Pradesh 492 372 3928 2964 6892 3924 2951 6875
Arunachal Pradesh 140 76 1041 600 1641 1041 600 1641
Assam 328 104 2616 832 3448 2616 832 3448
Bihar 416 160 3299 1272 4571 3294 1270 4564
Chhattisgarh 188 92 1496 736 2232 1495 736 2231
Delhi 8 120 59 842 901 57 808 865
Goa 20 36 159 285 444 160 287 447
Gujarat 216 216 1719 1705 3424 1720 1698 3418
Haryana 180 148 1440 1180 2620 1440 1180 2620
Himachal Pradesh 208 48 1660 381 2041 1660 382 2042
Jammu & Kashmir 276 180 1445 1268 2713 1446 1269 2715
Jharkhand 220 124 1758 989 2747 1758 990 2748
Karnataka 256 256 2036 2034 4070 2038 2037 4075
Kerala 328 232 2606 1846 4452 2606 1845 4451
Madhya Pradesh 344 248 2731 1966 4697 2734 1973 4707
Maharashtra 504 504 4015 3980 7995 4012 3984 7996
Manipur 172 148 1376 1182 2558 1376 1182 2558
Meghalaya 108 52 864 408 1272 864 408 1272
Mizoram 80 112 632 896 1528 632 896 1528
Nagaland 88 40 704 320 1024 704 320 1024
Orissa 372 132 2975 1055 4030 2974 1055 4029
Punjab 196 196 1560 1555 3115 1558 1557 3115
Rajasthan 324 196 2583 1553 4136 2575 1551 4126
Sikkim 76 20 608 160 768 608 160 768
Tamil Nadu 416 416 3320 3318 6638 3319 3320 6639
Tripura 164 68 1312 544 1856 1311 544 1855
Uttar Pradesh 740 388 5906 3087 8993 5908 3086 8994
Uttarakhand 132 92 1048 731 1779 1045 730 1775
West Bengal 448 344 3576 2750 6326 3575 2749 6324
A & N Islands 36 36 272 288 560 272 288 560
Chandigarh 4 36 32 273 305 32 273 305
Dadra & N. Haveli 12 12 96 96 192 96 96 192
Daman & Diu 8 8 64 64 128 64 64 128
Lakshadweep 8 16 55 128 183 55 128 183
Puducherry 16 56 128 448 576 128 448 576
All-India 7524 5284 59119 41736 100855 59097 41697 100794
11. Chapter Two 7
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
2.2.3.3 Table T2 shows the numbers of villages and urban blocks allotted for survey and
actually surveyed, and, for each of the two schedule types, the numbers of rural and urban
sample households in which the consumer expenditure schedule was canvassed.
2.3 Conceptual framework
2.3.1 Reference period: The consumption of any good or service by a household or person
occurs in the form of a flow over time. The survey may need to record the volume of
consumption over a short period such as a day, or a long period such as a year. The time period
for which consumption is recorded is called the reference period. It may vary from item to item.
Because the respondents are asked to recall and report the volume of consumption, the
reference period is also called the recall period.
2.3.2 Household consumer expenditure: The expenditure incurred by a household on
domestic consumption during the reference period is the household's consumer expenditure.
Expenditure incurred towards productive enterprises of households is excluded from
household consumer expenditure. Also excluded are expenditure on purchase and
construction of residential land and building, interest payments, insurance premium
payments, payments of fines and penalties, and expenditure on gambling including lottery
tickets. Money given as remittance, charity, gift, etc. is not consumer expenditure. However,
self-consumed produce of own farm or other household enterprise is valued and included in
household consumer expenditure. So are goods and services received as payment in kind or
free from employer, such as accommodation and medical care, and travelling allowance
excluding allowance for business trips.
2.3.2.1 For articles of food (including pan, tobacco and intoxicants) and fuel, household
consumption is measured by the quantity of the article actually used by the household during
the reference period, irrespective of the expenditure incurred on it. For articles of clothing and
footwear, consumption by a household is considered to occur at the moment when the article is
brought into maiden or first use by any household member. The consumption may be out of (a)
purchases made in cash or credit during the reference period or earlier; (b) home-grown stock;
(c) receipts in exchange of goods and services; (d) any other receipt like gift, charity, borrowing
and (e) free collection. Home produce is evaluated at the ex farm or ex factory rate.
2.3.2.2 For evaluating household consumption of all other items, a different approach is
followed: the expenditure made by the household during the reference period for the purchase
or acquisition of goods and services, regardless of when the goods and services are used and by
whom, is considered as household consumption. However, for a few items of expenditure such
as rent, telephone charges, consumer taxes and railway season tickets, expenditure during the
month is recorded as the amount that was last paid divided by the number of months to which
the payment related.
2.3.2.3 It is pertinent to mention here that the consumer expenditure of a household on food
items relates to the actual consumption by the members of the household and also by the guests
during ceremonies or otherwise. Normally, transfers of food, fuel, clothing and footwear made
12. 8 Chapter Two
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
by a household as charity, loan advance, etc. are not considered as consumption of that
household, since consumption out of all transfer receipts of these items have to be included.
However, meals prepared in a household and served to non-household members are an
exception to this rule. Meals prepared in the household kitchen and provided to the employees
and/or others would automatically get included in domestic consumption of employer (payer)
household. There is a practical difficulty of estimating the quantities and values of individual
items used for preparing the meals served to employees or others. Thus, to avoid double
counting, cooked meals received as perquisites from employer household or as gift or charity
are not recorded in the recipient household. As a general principle, cooked meals purchased
from the market for consumption of the members and for guests are also recorded in the
purchaser household. This procedure of recording cooked meals served to others in the
expenditure of the serving households leads to bias-free estimates of average per capita
consumption as well as total consumer expenditure.
2.3.2.4 All goods and services received as payment in kind or perquisites are included in the
consumption of the recipient household as goods and services received in exchange of services,
except for meals received from other households’ kitchens.
2.3.2.5 To simplify data collection, consumption of food processed in the home from one
“item” into another, such as milk converted into curd or butter, vegetables converted into
pickles, and rice converted into liquor are recorded in the survey against the primary or
ingredient item(s), such as milk, instead of the item in which form it is consumed (e.g. curd).
For some item groups such as intoxicants, this procedure leads to an underestimation of
consumption with a corresponding overestimation of the item groups of the major ingredients,
such as cereals.
2.3.3 Value of consumption: For items of food, pan, tobacco, intoxicants, fuel, clothing and
footwear, this term is not synonymous with expenditure incurred by the household on the item,
and the following rules of valuation are specified. Consumption out of purchase is evaluated at
the purchase price. Consumption out of home produce is evaluated at ex farm or ex factory rate.
Value of consumption out of gifts, loans, free collections, and goods received in exchange of
goods and services is imputed at the rate of average local retail prices prevailing during the
reference period.
2.4 Monthly per capita expenditure (MPCE)
2.4.1 Normally, the concept of per capita income – or per capita (overall) expenditure, if
income data are not available – is used for comparison of average living standards between
countries, between regions, and between social or occupational groups. For studies of poverty
and inequality within populations, however, average income or average expenditure is not
enough. One needs to assign a value that indicates level of living to each individual, or at least
to each household, in a population in order to know the level of inequality in living standards of
the population, or the proportion living in poverty.
13. Chapter Two 9
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
2.4.2 The NSS concept of MPCE, therefore, is defined first at the household level (household
monthly consumer expenditure ÷ household size). This measure serves as the indicator of the
household’s level of living.
2.4.3 Next, each individual’s MPCE is defined as the MPCE of the household to which the
person (man, woman or child) belongs. This assigns to each person a number representing his
or her level of living. The distribution of persons by their MPCE (i.e., their household MPCE)
can then be built up, giving a picture of the population classified by economic level.
2.5 The three estimates of average and distribution of MPCE obtained from the 66th
round survey
2.5.1 From each sample household where Schedule Type 1 was canvassed, two measures of
MPCE emerged. This was because for each such household, there were two sets of data for
Category I items (see Table T1) – “last 30 days” data and “last 365 days” data – unlike items
of Categories II and III, for which only “last 30 days” was available. Thus there were two
ways of measuring household MPCE: one using “last 30 days” for all items, and the other
using “last 365 days” data for Category I items and “last 30 days” for the rest. The first
measure of MPCE is called MPCEURP (Uniform Reference Period MPCE) and the second,
MPCEMRP (Mixed Reference Period MPCE). From data on MPCEURP and MPCEMRP
(collected from households where Schedule Type 1 was canvassed), two alternative estimates
of the distribution of MPCE and average MPCE can be built up.
2.5.2 From each sample household where Schedule Type 2 was canvassed, a single measure
of MPCE emerged, as, for each item of consumption, data for only one reference period had
been collected. Since the reference period system used for Schedule Type 2 was only a slight
modification of the Mixed Reference Period (differing only in the reference period used for
Category II items), this measure of MPCE was called the MPCEMMRP (Modified Mixed
Reference Period MPCE). The estimates of the distribution of MPCE and average MPCE that
can be built up from Schedule Type 2 data are therefore called the estimates of MPCEMMRP.
14. NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
Chapter Three
Key findings of NSS 66th
round survey on household consumer expenditure
3.1 A note on the survey results
3.1.1 As explained in the previous section, in the 66th
round CES, the data on household
consumption was collected with three reference periods of preceding 7 days, 30 days and 365
days for specified set of items of the consumption basket (please refer to Table T1, page 4).
The survey architecture involving alternative reference periods was evolved after the
empirical analysis in the past to capture consumption more appropriately, wherein it was
noted that the composition of reference periods in Schedule Type 2 meets the objective better
than Schedule Type 1, adopted in the previous quinquennial round (NSS 61st
round). Thus the
NSS 66th
round brings out three alternative estimates of MPCE. MPCEURP and MPCEMRP,
arrived at on the basis of Schedule (1.0) Type 1, provide estimates comparable with NSS 61st
round and MPCEMMRP is a new set of estimates based on Schedule (1.0) Type 2.
3.1.2 The detailed results presented in this document are mainly based on MPCEMMRP.
However, relevant indicators based on MPCEURP and MPCEMRP are also given for
comparability.
3.1.3 Besides the average MPCE, the survey results also provide distribution of population
over decile classes of MPCE. Thus the first decile class comprises the bottom 10 percent of
population in terms of MPCE and the top (10th
) decile class comprises the top 10 percent of
population. These decile classes for rural and urban domains are separately arrived at for
MPCEURP, MPCEMRP and MPCEMMRP. Further, in addition to all-India decile classes, similar
State-specific decile classes are also derived and Statewise results are given for these classes
in the detailed tables.
3.2 Average MPCEMMRP
3.2.1 Average MPCE in 2009-10 was estimated as Rs.1053.64 in rural India and Rs.1984.46
in urban India (Table T3). Thus the per capita expenditure level of the urban population was
on the average about 88% higher than that of the rural population.
3.2.2 The poorest 10% of India’s rural population had an average MPCE of Rs.453. The
poorest 10% of the urban population had an average MPCE of Rs.599. (See Fig. 1.)
3.2.3 The top 10% of the rural population, ranked by MPCE, had an average MPCE of
Rs.2517 – about 5.6 times that of the bottom 10%. The top 10% of the urban population had
an average MPCE of Rs.5863 – about 9.8 times that of the bottom 10%.
3.2.4 Fig.2 shows average MPCEMMRP in rural and urban sectors of the major States of
India. In Table T4, the major States have been arranged in ascending order of average
MPCEMMRP in the rural sector. Among the major States, Kerala (Rs.1835) had the highest
15. Chapter Three 11
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
rural MPCE. It was followed by Punjab (Rs.1649) and Haryana (Rs.1510). In all other major
States, average rural MPCE was between Rs.750 and Rs.1250.
3.2.5 Average rural MPCE was lowest in Bihar and Chhattisgarh (around Rs.780), and also
low in Orissa and Jharkhand (around Rs.820), as well as in Uttar Pradesh and Madhya
Pradesh (around Rs.900).
3.2.6 Maharashtra (Rs.2437) and Kerala (Rs.2413) were the two major States with the
highest MPCE in the urban sector, followed by Haryana (Rs.2321). The other major States
with average urban MPCE higher than the all-India average were Andhra Pradesh (Rs.2238),
Punjab (Rs.2109) and Karnataka (Rs.2053).
Table T3: Average MPCEMMRP across decile classes of MPCEMMRP, all-India
rural India urban India
decile class of
MPCEMMRP
average
MPCEMMRP (Rs.)
decile class of
MPCEMMRP
average
MPCEMMRP (Rs.)
(1) (2) (3) (4)
1st
452.98 1st
599.27
2nd
584.40 2nd
830.96
3rd
675.35 3rd
1011.84
4th
760.79 4th
1196.08
5th
848.07 5th
1397.99
6th
944.35 6th
1633.42
7th
1062.93 7th
1930.96
8th
1220.59 8th
2329.87
9th
1470.33 9th
3050.69
10th
2516.69 10th
5863.25
all classes 1053.64 all classes 1984.46
3.2.7 Urban MPCE was lowest in Bihar (Rs.1238). No other major State had urban MPCE
below Rs.1500. Orissa, Uttar Pradesh and Jharkhand all had average MPCE between Rs.1545
and Rs.1585. In Chhattisgarh, Rajasthan and Madhya Pradesh, average MPCE was between
Rs.1645 and Rs.1670.
16. 12 Chapter Three
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
3.2.8 Average urban MPCE was only 28% higher than average rural MPCE in Punjab, only
31% higher than average rural MPCE in Kerala, and only 41% higher in Rajasthan. In
Maharashtra and Chhattisgarh, on the other hand, average urban MPCE was around 110%
higher than average rural MPCE. In West Bengal and Karnataka, too, per capita expenditure
in the urban sector was more than double that in the rural.8
Table T4: Average MPCEMMRP and food share: major States
State
rural urban
average
MPCE
(Rs.)
per capita
food exp.
(Rs.)
% share of
food in cons.
exp.
average
MPCE
(Rs.)
per capita
food exp.
(Rs.)
% share of
food in cons.
exp.
(1) (2) (3) (4) (5) (6) (7)
Bihar 780 505 64.7 1238 655 52.9
Chhattisgarh 784 456 58.2 1647 720 43.7
Orissa 818 507 61.9 1548 749 48.4
Jharkhand 825 503 60.9 1584 816 51.5
Uttar Pradesh 899 521 57.9 1574 728 46.3
Madhya Pradesh 903 504 55.8 1666 694 41.7
West Bengal 952 604 63.5 1965 907 46.2
Assam 1003 646 64.4 1755 929 52.9
Karnataka 1020 577 56.5 2053 869 42.3
All-India 1054 600 57.0 1984 881 44.4
Gujarat 1110 640 57.7 1909 882 46.2
Maharashtra 1153 623 54.0 2437 999 41.0
Tamil Nadu 1160 635 54.7 1948 876 45.0
Rajasthan 1179 647 54.8 1663 798 48.0
Andhra Pradesh 1234 717 58.1 2238 1002 44.8
Haryana 1510 815 54.0 2321 1001 43.1
Punjab 1649 795 48.2 2109 933 44.3
Kerala 1835 843 45.9 2413 970 40.2
8
Abbreviations used for State names in Fig.2 have been explained on page 13.
17. Chapter Three 13
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
3.3 Median and deciles of the MPCEMMRP distribution
3.3.1 Table T5 (R & U) shows the first to ninth deciles (including the median, which is the
5th
decile) of the rural and urban MPCEMMRP distributions in India and its States.
3.3.2 While average rural MPCE was Rs.1054, the median level of rural MPCE was Rs.895
– half the rural population belonged to households with MPCE below this level (Table T5-R).
3.3.3 In urban India, where average MPCE was Rs.1984, the median level of MPCE was
Rs.1502 – half the urban population had MPCE below this level (Table T5-U).
3.3.4 Nearly 40% of the rural population of India had MPCE below Rs.800 and about 60%
had MPCE below Rs.1000. About 10% had MPCE above Rs.1650.
3.3.5 About 70% of the urban population of India had MPCE above Rs.1100, nearly 30%
had MPCE above Rs.2100, and 20% had MPCE above Rs.2600.
3.3.6 In Jharkhand, Chhattisgarh and Bihar, less than 50% of the rural population had
MPCE above Rs.710. More than 70% of the rural population of Jharkhand and Orissa had
MPCE below Rs.900, the percentage being still higher in Chhattisgarh and Bihar.
3.3.7 The percentage of rural population with MPCE above Rs.1000 exceeded 70% in
Haryana and Punjab, while in Kerala 80% of the rural population had MPCE exceeding
Rs.977.
3.3.8 Only 10% of the urban population of Punjab and Haryana, and only a slightly higher
percentage in Kerala and Tamil Nadu, had MPCE below Rs.850, compared to a little less
than 30% in Jharkhand and over 40% in Bihar.
3.4 Share of food in consumer expenditure (MMRP)
3.4.1 Per capita food expenditure in rural India as a whole was estimated at Rs.600 for rural
India and Rs.881 for urban India (Table T4). This means that the share of food in consumer
expenditure was 57% in rural India and 44.4% in urban India. It is seen that in rural India, the
food share ranges from under 46% in Kerala to 64-65% in Bihar and Assam. In the urban
sector, the food share ranges from 40.2% in Kerala to nearly 53% in Bihar and Assam. Also,
States with low average MPCE tend to have a higher share of food in total consumer
expenditure.
Abbreviations used for State names in Fig. 2, page 12:
AP Andhra Pradesh JHK Jharkhand PUN Punjab
ASM Assam KTK Karnataka RAJ Rajasthan
BHR Bihar KRL Kerala TN Tamil Nadu
CTG Chhattisgarh MP Madhya Pradesh UP Uttar Pradesh
GUJ Gujarat MAH Maharashtra WB West Bengal
HAR Haryana ORS Orissa IND India
20. 16 Chapter Three
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
3.5 Trends in level of consumption in monetary and real terms
3.5.1 Trends from MPCEURP estimates
3.5.1.1 Table T6 below shows estimates of all-India average MPCEURP from four
quinquennial surveys of consumer expenditure including the 66th
round survey. (URP
estimates cannot be obtained from the 55th
round quinquennial survey.) For rural India, real
MPCE (measured using a price deflator with 1987-88 as base) is seen to have grown from
Rs.158.10 in 1987-88 to Rs.187.79 in 2009-10 – an increase of only 19% over 22 years. In
urban India there has been a substantially higher growth in real MPCE (obtained using a
similar deflator with base 1987-88) – from Rs.249.92 in 1987-88 to Rs.355.03 in 2007-08 –
an increase of 42% in the 22 year-period since 1987-88. The growth in urban MPCE over the
16-year period since 1993-94 has been about 34%.
Table T6: Growth in MPCEURP at current and constant prices since 1987-88, all-India
characteristic
year
1987-88 1993-94 2004-05 2009-10
(1) (2) (3) (4) (5)
MPCE: rural (Rs.): current prices 158.10 281.40 558.78 927.70
Price deflator for rural sector* 100 176 319 494
MPCE: rural (Rs.): base 1987-88 158.10 159.89 175.17 187.79
MPCE: urban (Rs.): current prices 249.92 458.04 1052.36 1785.81
Price deflator for urban sector# 100 173 338 503
MPCE: urban (Rs.): base 1987-88 249.92 264.76 311.35 355.03
*derived from CPI for agricultural labourers with base 1986-87=100
#derived from CPI for urban non-manual employees with base 1984-85=100
3.5.2 Trends from MPCEMRP estimates
3.5.2.1 While Table T6 above gives estimates obtained by the URP method, a corresponding
table of estimates of MPCE obtained by the MRP method at current and constant prices is
shown below (Table T7). For 1987-88, MRP estimates are not available. In terms of the MRP
estimates, MPCE in rural India has grown from Rs.162.56 in 1993-94 to Rs.192.93 in 2009-
10 – that is, by about 19% in 16 years9
. Urban MPCE has grown from Rs.268.38 in 1993-94
to Rs.368.99 in 2009-10 – a growth of 37½% over the 16-year period since 1993-94.
9
Over the same period, the growth of rural MPCE computed using the URP estimates (Table 3.4) comes to
about 17½%.
21. Chapter Three 17
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
Table T7: Growth in MPCEMRP at current and constant prices since 1993-94, all-India
characteristic
year
1993-94 1999-2000 2004-05 2009-10
(1) (2) (3) (4) (5)
MPCE: rural (Rs.): current prices 286.10 486.16 579.17 953.05
Price deflator for rural sector* 176 271 319 494
MPCE: rural (Rs.): base 1987-88 162.56 179.39 181.56 192.93
MPCE: urban (Rs.): current prices 464.30 854.92 1104.60 1856.01
Price deflator for urban sector# 173 279 338 503
MPCE: urban (Rs.): base 1987-88 268.38 306.42 326.80 368.99
*derived from CPI for agricultural labourers with base 1986-87=100
#derived from CPI for urban non-manual employees with base 1984-85=100
3.5.3 Ranking of States by MPCEMRP – 66th
and 61st
round results
3.5.3.1 Table T8 shows the rankings of the major States of India by rural and urban
MPCEMRP from the 66th
and 61st
round surveys of consumer expenditure.
Table T8: Rankings of major States by rural and urban MPCEMRP from the 66th
round (2009-10)
and the 61st
round (2004-05) of NSS
Rural Urban
State
Ranking by MPCEMRP
(highest =1) State
Ranking by MPCEMRP
(highest =1)
2009-10 2004-05 2009-10 2004-05
(1) (2) (3) (4) (5) (6)
Kerala 1 1 Kerala 1 1
Punjab 2 2 Maharashtra 2 3
Haryana 3 3 Punjab 3 2
Andhra Pradesh 4 5 Karnataka 4 8
Gujarat 5 4 Andhra Pradesh 5 10
Maharashtra 6 8 Haryana 6 5
Rajasthan 7 7 Gujarat 7 4
Tamil Nadu 8 6 West Bengal 8 7
Karnataka 9 11 Tamil Nadu 9 6
Assam 10 9 Assam 10 9
West Bengal 11 10 Rajasthan 11 13
Uttar Pradesh 12 12 Madhya Pradesh 12 14
Madhya Pradesh 13 13 Uttar Pradesh 13 15
Jharkhand 14 16 Orissa 14 16
Orissa 15 17 Jharkhand 15 11
Bihar 16 14 Chhattisgarh 16 12
Chhattisgarh 17 15 Bihar 17 17
22. 18 Chapter Three
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
3.5.3.2 It is seen from Table T8 that in the rural sector, the top three States as determined by
the 61st
round survey have retained their positions in the 66th
round and that no State has
undergone a change in rank of more than 2. In the urban sector, on the other hand, the ranks
of four States have altered by 4 or more, and only the ranks of the top and bottom States have
remained unchanged.
3.6 Trends in pattern of consumption
3.6.1 Table T9 shows changes in percentage composition of MPCEURP (or in aggregate
consumer expenditure) as shown by the 5 quinquennial surveys beginning with 1987-88. The
share of food is seen to have declined by about 10 percentage points to 53.6% in the rural
sector and by about 16 percentage points to 40.7% in the urban sector over a 22-year period.
Since the last quinquennial survey (held 5 years previously), the share of food has fallen by
about 1½ percentage points in rural India and nearly 2 percentage points in urban India.
Table T9: Trends in percentage composition of consumer expenditure since 1987-88
item group
rural urban
share in total consumer expenditure in
1987-
88
1993-
94
1999-
2000*
2004-
05
2009-
10
1987-
88
1993-
94
1999-
2000*
2004-
05
2009-
10
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
cereals 26.3 24.2 22.2 18.0 15.6 15.0 14.0 12.4 10.1 9.1
gram 0.2 0.2 0.1 0.1 0.2 0.2 0.2 0.1 0.1 0.1
cereal substitutes 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0
pulses & products 4.0 3.8 3.8 3.1 3.7 3.4 3.0 2.8 2.1 2.7
milk & products 8.6 9.5 8.8 8.5 8.6 9.5 9.8 8.7 7.9 7.8
edible oil 5.0 4.4 3.7 4.6 3.7 5.3 4.4 3.1 3.5 2.6
egg, fish & meat 3.3 3.3 3.3 3.3 3.5 3.6 3.4 3.1 2.7 2.7
vegetables 5.2 6.0 6.2 6.1 6.2 5.3 5.5 5.1 4.5 4.3
fruits & nuts 1.6 1.7 1.7 1.9 1.6 2.5 2.7 2.4 2.2 2.1
sugar 2.9 3.1 2.4 2.4 2.4 2.4 2.4 1.6 1.5 1.5
salt & spices 2.9 2.7 3.0 2.5 2.4 2.3 2.0 2.2 1.7 1.5
beverages, etc. 3.9 4.2 4.2 4.5 5.6 6.8 7.2 6.4 6.2 6.3
food total 64.0 63.2 59.4 55.0 53.6 56.4 54.7 48.1 42.5 40.7
pan, tobacco, intox. 3.2 3.2 2.9 2.7 2.2 2.6 2.3 1.9 1.6 1.2
fuel & light 7.5 7.4 7.5 10.2 9.5 6.8 6.6 7.8 9.9 8.0
clothing & bedding 6.7 5.4 6.9 4.5 4.9 5.9 4.7 6.1 4.0 4.7
footwear 1.0 0.9 1.1 0.8 1.0 1.1 0.9 1.2 0.7 0.9
misc. g. & services 14.5 17.3 19.6 23.4 24.0 23.2 27.5 31.3 37.2 37.8
durable goods 3.1 2.7 2.6 3.4 4.8 4.1 3.3 3.6 4.1 6.7
non-food total 36.0 36.8 40.6 45.0 46.4 43.6 45.3 51.9 57.5 59.3
total expenditure 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
*URP estimates shown except for 1999-2000, for which only MRP estimates are available.
3.6.2 Cereals have registered the largest decline in share among all the item groups – from
26.3% to 15.6% in rural India and from 15% to 9% in urban India. In the urban sector,
23. Chapter Three 19
NSS KI(66/1.0): Key Indicators of Household Consumer Expenditure in India, 2009-10
practically all the food groups have suffered a decline in share. For the rural sector,
“beverages, etc.” show a distinct rise in share, while pulses, edible oil, sugar, and “salt and
spices” show a fall, and for other groups, the evidence is not very conclusive.
3.6.3 Pan, tobacco and intoxicants exhibit a distinct downward trend, especially in urban
areas, while fuel and light appear to show an increase in share in the last decade, especially in
urban India, clothing and bedding show an overall fall, and the share of durable goods
appears to be picking up. The greatest gainer in share of expenditure is clearly the
“miscellaneous goods and services” category (including education and medical care). The
share of this group has soared (growing by around 70% of its level in 1987-88) from 14.5%
to 24% in rural India and from 23.2% to 37.8% in urban India.
3.6.4 The details of consumption by item group of food and non-food are given in Tables
2A, 2B and 2C (pages 93-95) for URP, MRP and MMRP. For MMRP, additionally, item-
level consumption estimates – both quantity and value of per capita consumption – are given
in Tables 3R and 3U (pages 96-103) for each food item appearing in Schedule 1.0 and in
Tables 4R and 4U (pages 104-115) for each non-food item.
3.7 Comparative picture of URP, MRP and MMRP estimates of MPCE: major States
3.7.1 The three estimates of MPCE for rural and urban sectors of the major States are shown
in Table T10 for purposes of comparison. Fig. 3 shows all-India rural and urban MPCE
according to the three different reference period systems.