Improving Consumption Equality: India's Latest Household Expenditure Survey

Current Context: The Household Consumption Expenditure Survey (HCES), was released by the National Statistical after a gap of 11 years. This survey reveals that the value of the Gini Coefficient for consumption expenditure in the country declined.

• National Trend: The Household Consumption Expenditure Survey (HCES) 2022-23 indicates a decline in consumption inequality across India compared to 2011-12. This is measured by the Gini coefficient, where a lower value signifies less disparity in spending.
• Positive Shifts: The Gini coefficient for rural households dropped from 0.283 in 2011-12 to 0.266 in 2022-23, and for urban households, it went down from 0.363 to 0.314. This suggests a rise in consumption levels for lower-income groups.
• Increased Spending: The survey also found a significant increase in average monthly consumption expenditure per person, both in rural and urban areas. This suggests a potential improvement in living standards for many households.

Question:

1 According to the Household Consumption Expenditure Survey (HCES) 2022-23, how did the Gini coefficient change for rural households compared to 2011-12?

• A) It increased from 0.283 to 0.314.
• B) It decreased from 0.283 to 0.266.
• C) It remained the same at 0.283.
• D) It fluctuated but stayed above 0.3.

Answer: B) The Gini coefficient for rural households dropped from 0.283 in 2011-12 to 0.266 in 2022-23, and for urban households, it went down from 0.363 to 0.314. This suggests a rise in consumption levels for lower-income groups.