While average monthly per capita expenditure stood at Rs 1,053.64 in rural areas and Rs 1,984.46 in urban India in 2009-10, there remained a huge gap between the incomes of the top and bottom segments of the population, as per the latest National Sample Survey.
The National Sample Survey also found that food items accounted for the bulk of the expenditure, with the share of food in total household spending at 57 per cent and 44 per cent in rural and urban areas, respectively.
Key indicators from the 66th round of the NSS’ survey released on Friday said the per capita expenditure level of the urban population was on average about 88 per cent higher than that of the rural population, based on the measure of modified mixed reference period (MMRP).
“In terms of MMRP estimates, the average monthly per capita expenditure (MPCE) in 2009-10 was estimated as Rs 1,053.64 in rural India and Rs 1,984.46 in urban India,” it said.
The survey found that the poorest 10 per cent of India’s rural population had an average MPCE of Rs 453, while for the poorest 10 per cent of the urban population, the average MPCE stood at Rs 599.
There is a huge gap between the income level of the top and bottom segments in the country.
The top 10 per cent of the rural population had an average MPCE of Rs 2,517, which is about 5.6 times that of the bottom 10 per cent.
Meanwhile, the top 10 per cent of the urban population had an average MPCE of Rs 5,863, or about 9.8 times that of the bottom 10 per cent.
“In rural India, half of the population belonged to households with an MPCE below Rs 895 (median value) and nearly 40 per cent of the rural population of India had MPCE below Rs 800,” the key indicators said.
About 60 per cent of the rural population had an MPCE of less than Rs 1,000, while only about 10 per cent had an MPCE above Rs 1,650.
In urban areas of the country, half the population was living with an MPCE below Rs 1,500.
About 70 per cent of the rural population had an MPCE above Rs 1,100, while nearly 30 per cent had an MPCE above Rs 2,100 and 20 per cent above Rs 2,600.
There was also a marked difference in the spending patterns of the top and bottom strata with respect to food.
In rural India, the share of food out of the total expenditure of the bottom 10 per cent of population was 65 per cent and for the top 10 per cent of population, it was 46 per cent.
Meanwhile, in urban areas, the share of food was 62 per cent of the budget for the bottom 10 per cent of the population and 31 per cent for the top 10 per cent.
Besides the modified mixed reference period (MMRP), two other measures — uniform reference period (URP) and mixed reference period (MRP) — were also used for the study.
While MMRP measure, on which the results of the survey are mainly based, was used for the first time, the other two measures have been used in previous surveys also.
As per the URP, the MPCE stood at Rs 927.70 for rural areas and Rs 1,785.81 in urban areas. It was Rs 558.78 and Rs 1,052.36, respectively, in rural and urban areas during the previous survey conducted in 2004-05.
According to the MRP, as per the latest 66th round, monthly per capital expenditure stood at Rs 953.05 and Rs 1,856.01 in rural and urban areas, respectively, in 2009-10 as against Rs 579.17 and Rs 1,104.60 in 2004-05.
The survey was conducted between July, 2009, and June, 2010, and covered 7,524 villages in rural areas and 5,284 urban blocks spread across the country.
The data on household consumption was collected with respect to three reference periods — the preceding seven days, 30 days and 365 days — for a specified set of items in the consumption basket.
The items of reference included clothing, bedding, footwear, education, medical, durable goods, edible oil, eggs, fish and meat, vegetables, fruits, spices, beverages and processed foods, pan, tobacco and intoxicants, other food items, fuel and light, miscellaneous goods and services, rent and taxes.
