India: Per Capita Expenditure Rose 19% in Rural Areas, 17% in Towns


India's per capita expenditure rise at a rapid pace during the past 2 years. Spending increased 19 % annually in rural areas and 17 % in urban areas, which indicates rising income and a reduction in poverty levels.

Latest data put out by the ministry of statistics &  programme implementation show monthly per capita expenditure (MPCE), measured in terms of uniform reference period, for urban areas rising to Rs. 2,399 in 2011-12 from Rs. 1,786 in 2009-10. Rural MPCE rose faster to Rs 1,279 from Rs 9,28 during the same period.

Measured with a new formula known as modified mixed reference period, MPCE rose to Rs 2,630 in 2011-12 from Rs. 1,984 in 2009-10 for urban areas while it rose to Rs 1,430 from R1,053 in rural areas.

Whichever way it is looked at, the rise in MPCE indicates a fall in poverty levels. Last year, the preliminary data showed MPCE at Rs.2,402 for urban areas and Rs. 1,281 for rural areas which translates into poverty levels of 26.3 %, a sharp decline from over 30 % until 2009-10.

The data showed urban households spend 42.6 % on food, 6.9 % on education, 6.7 % on fuel and light, 6.2 % on rent and 6.4 % on clothing. In case of rural households, the spending on food is 52.9 % while it is 8 % for fuel, 7 % on clothing and 6.7 % on medical costs.

The poorest 10 % of India’s rural population had an average MPCE of Rs. 616 to Rs.710 while the poorest 10 % of the urban population had an average MPCE of Rs. 827 to Rs. 983.


The top 10 % of the rural population had an average MPCE of Rs 2,886. 
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