GOVERNMENT OF INDIA MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION NATIONAL SAMPLE SURVEY OFFICE

Dated the 8th July, 2011 17th Asadha, 1933 Saka

PRESS RELEASE KEY INDICATORS OF HOUSEHOLD CONSUMER EXPENDITURE IN INDIA, 2009-10

The National Sample Survey Office (NSSO), Ministry of Statistics and Programme Implementation has released the key indicators of household consumer expenditure in India, generated from the data collected in its 66th round survey during July 2009 - June 2010. NSS surveys on consumer expenditure are conducted quinquennially starting from 27th round (October 1972 September 1973) and the last quinquennial survey was conducted in NSS 61st round (July 2004- June 2005) for which, the results have already been released. The NSS 66th round was the eighth quinquennial round on the subject. The NSS consumer expenditure survey aims at generating estimates of household monthly per capita 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 and are crucial input for estimation of prevalence of poverty by the Planning Commission. The detailed results of quinquennial survey on consumer expenditure are usually brought out by the NSSO through a number of reports. In order to make available the salient results of the survey, well in advance of the release of its reports, for use in planning, policy formulation, decision support and as input for further statistical exercises, the NSSO has released the key indicators.

The key indicators are based on the Central Sample consisting of 7,524 villages in rural areas and 5,284 urban blocks spread over all States and Union Territories except in (i) interior villages of Nagaland situated beyond five kilometres of a bus route (ii) villages in Andaman and Nicobar Islands which remain inaccessible throughout the year and (iii) Leh, Kargil and Poonch districts of Jammu and Kashmir. In the 66th round consumer expenditure survey, 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. Two types of schedules namely Schedule 1.0 Type 1 and Schedule 1.0 Type 2 were canvassed during the survey. The reference periods

for different Item Groups divided in three Categories in both the schedules of the survey are summarized below: Reference periods used for collection of consumption data in Schedule 1.0 Type 1 and Type 2 Category I Item groups Clothing, bedding, footwear, education, medical (institutional), durable goods Edible oil; egg, fish & meat; vegetables, fruits, spices, beverages and processed foods; pan, tobacco & intoxicants All other food, fuel and light, miscellaneous goods and services including noninstitutional medical; rents and taxes Reference period for Schedule Type 1 Last 30 days and Last 365 days Last 30 days Schedule Type 2 Last 365 days

II

Last 7 days

III

Last 30 days

Last 30 days

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 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.

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 is called the MPCEMMRP (Modified Mixed Reference Period MPCE). The values of different types of average MPCE for NSS 61st and 66th rounds at allIndia level are given below: Average MPCE (Rs.) MPCEURP MPCEMRP Rural Urban Rural Urban st 61 558.78 1052.36 579.17 1104.60 66th 927.70 1785.81 953.05 1856.01 Note: Type 2 Schedule was not canvassed in the 61st Round. NSS Round
2

MPCEMMRP Rural Urban 1053.04 1984.46

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 State-wise results are given for these classes in the detailed tables. The results released are mainly based on MPCEMMRP. However, relevant indicators based on MPCEURP and MPCEMRP are also given for comparability. The 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 item-wise estimates of quantity and value of per capita consumption are given at the all-India level. Some salient findings of the survey relating to monthly per capita expenditure (MPCE) based on modified mixed reference period (MMRP) are as follows: In terms of MMRP estimates, the average MPCE in 2009-10 was estimated as Rs.1053.64 in rural India and Rs.1984.46 in urban India. Thus the per capita expenditure level of the urban population was on the average about 88% higher than that of the rural population. The poorest 10% of Indias rural population had an average MPCE of Rs.453. The poorest 10% of the urban population had an average MPCE of Rs.599. 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%. Average MPCEMMRP across decile classes of MPCEMMRP, at all-India for rural and urban areas during 2009-10 is given in Annexure-I. In rural India, half of the population belonged to households with MPCE below Rs.895 (median value) and nearly 40% of the rural population of India had MPCE below Rs.800. About 60% of rural population had MPCE below Rs.1000. About 10% had MPCE above Rs.1650. Correspondingly, in urban areas of India, half the population was living with MPCE below Rs.1500, about 70% of population had MPCE above Rs.1100, nearly 30% had MPCE above Rs.2100, and 20% had MPCE above Rs.2600. The share of food in total household expenditure was 57% and 44% in rural and urban India respectively. In rural India, this share in respect of bottom 10% population was 65% and for top 10% population, 46%. In urban India, the share of food was 62% for its bottom 10% population and 31% for top 10 % population. Average MPCEMMRP and share of food for all India and major States during 2009-10 is given at Annexure II.

Trends in percentage composition of MPCEURP since 1987-88 for various items, food total and non-food total for rural and urban areas in India is given at Annexure-III. The publication is available on the website (www.mospi.gov.in) of the Ministry of Statistics and Programme Implementation. --------

Annexure-I
Average MPCEMMRP across decile classes of MPCEMMRP, all-India, 2009-10 Rrural Decile class of MPCEMMRP (Rs.) (1)
Less than 537

Urban Decile class of MPCEMMRP (Rs.) (3)

Less than 733

537-631 631-718 718-804 804-895 895-1001 1001-1133 1133-1322 1322-1653 1653 and above All classes

Average MPCEMMRP (Rs.) (2) 452.98 584.40 675.35 760.79 848.07 944.35 1062.93 1220.59 1470.33 2516.69 1053.64

733-926 926-1101 1101-1293 1293-1502 1502-1773 1773-2097 2097-2603 2603-3665 3665 and above All classes

Average MPCEMMRP (Rs.) (4) 599.27 830.96 1011.84 1196.08 1397.99 1633.42 1930.96 2329.87 3050.69 5863.25 1984.46

Note: Each decile class corresponds to 10% of population

Annexure-II
Average MPCEMMRP and food share: major States, 2009-10 State (1) Bihar Chhattisgarh Orissa Jharkhand Uttar Pradesh Madhya Pradesh West Bengal Assam Karnataka All-India Gujarat Maharashtra Tamil Nadu Rajasthan Andhra Pradesh Haryana Punjab Kerala average MPCE (Rs.) (2) 780 784 818 825 899 903 952 1003 1020 1054 1110 1153 1160 1179 1234 1510 1649 1835 rural per capita food exp. (Rs.) (3) 505 456 507 503 521 504 604 646 577 600 640 623 635 647 717 815 795 843 % share of food in cons. exp. (4) 64.7 58.2 61.9 60.9 57.9 55.8 63.5 64.4 56.5 57.0 57.7 54.0 54.7 54.8 58.1 54.0 48.2 45.9 average MPCE (Rs.) (5) 1238 1647 1548 1584 1574 1666 1965 1755 2053 1984 1909 2437 1948 1663 2238 2321 2109 2413 urban per capita food exp. (Rs.) (6) 655 720 749 816 728 694 907 929 869 881 882 999 876 798 1002 1001 933 970 % share of food in cons. exp. (7) 52.9 43.7 48.4 51.5 46.3 41.7 46.2 52.9 42.3 44.4 46.2 41.0 45.0 48.0 44.8 43.1 44.3 40.2

Annexure-III
Trends in percentage composition of MPCEURP since 1987-88 rural item group 198788
(1) (2)

urban share in total consumer expenditure in 2004- 2009- 1987- 1993- 199905 10 88 94 2000*
(5) (6) (7) (8) (9)

199394
(3)

19992000*
(4)

200405
(10)

200910
(11)

cereals gram cereal substitutes pulses & products milk & products edible oil egg, fish & meat vegetables fruits & nuts sugar salt & spices beverages, etc. food total pan, tobacco, intox. fuel & light clothing & bedding footwear misc. g. & services durable goods non-food total total expenditure

26.3 0.2 0.1 4.0 8.6 5.0 3.3 5.2 1.6 2.9 2.9 3.9 64.0 3.2 7.5 6.7 1.0 14.5 3.1 36.0 100.0

24.2 0.2 0.1 3.8 9.5 4.4 3.3 6.0 1.7 3.1 2.7 4.2 63.2 3.2 7.4 5.4 0.9 17.3 2.7 36.8 100.0

22.2 0.1 0.1 3.8 8.8 3.7 3.3 6.2 1.7 2.4 3.0 4.2 59.4 2.9 7.5 6.9 1.1 19.6 2.6 40.6 100.0

18.0 0.1 0.1 3.1 8.5 4.6 3.3 6.1 1.9 2.4 2.5 4.5 55.0 2.7 10.2 4.5 0.8 23.4 3.4 45.0 100.0

15.6 0.2 0.1 3.7 8.6 3.7 3.5 6.2 1.6 2.4 2.4 5.6 53.6 2.2 9.5 4.9 1.0 24.0 4.8 46.4 100.0

15.0 0.2 0.1 3.4 9.5 5.3 3.6 5.3 2.5 2.4 2.3 6.8 56.4 2.6 6.8 5.9 1.1 23.2 4.1 43.6 100.0

14.0 0.2 0.1 3.0 9.8 4.4 3.4 5.5 2.7 2.4 2.0 7.2 54.7 2.3 6.6 4.7 0.9 27.5 3.3 45.3 100.0

12.4 0.1 0.0 2.8 8.7 3.1 3.1 5.1 2.4 1.6 2.2 6.4 48.1 1.9 7.8 6.1 1.2 31.3 3.6 51.9 100.0

10.1 0.1 0.0 2.1 7.9 3.5 2.7 4.5 2.2 1.5 1.7 6.2 42.5 1.6 9.9 4.0 0.7 37.2 4.1 57.5 100.0

9.1 0.1 0.0 2.7 7.8 2.6 2.7 4.3 2.1 1.5 1.5 6.3 40.7 1.2 8.0 4.7 0.9 37.8 6.7 59.3 100.0

*URP estimates shown except for 1999-2000, for which only MRP estimates are available.