‘Southern states dominate’: Kerala, Telangana, Tamil Nadu lead India’s spending surge

South India outperforms the rest of the country in monthly per capita consumption expenditure (MPCE), according to the Household Consumption Expenditure Survey 2023-24, released on Friday. Five southern states, Kerala, Tamil Nadu, Telangana, Andhra Pradesh and Karnataka, reported are that MPCE levels are significantly higher than the national average.

Rural households spend Rs 6,611 per month, while urban households spend Rs 7,834, compared to the national average of Rs 4,122 and Rs 6,996 respectively 5675 rubles and 9131 rubles.

Andhra Pradesh reported the highest MPCE in the South with rural households spending Rs 6,107 and urban households Rs 9,877.The top five was rounded off by Karnataka with Rs 5,068 in rural areas and Rs 8,169 in urban zones.

Interestingly, industrialized states like Gujarat and Maharashtra hover around the national average, while populous northern states like Uttar Pradesh, Bihar, Madhya Pradesh and Rajasthan lag behind. as well as in municipal costs.

The survey revealed stark contrasts across the country.The highest MPCE was recorded in Sikkim; rural households spend Rs 9,377 and urban households spend Rs 13,927.At the other end, Chhattisgarh reported the lowest MPCE of Rs 2,739 in rural areas and Rs 4,927 in urban areas.

The survey also revealed significant rural-urban disparities, with Meghalaya leading the way with a rural-urban gap of 104%, followed by Jharkhand at 83%. In all 28 states, nine reported MPCE levels above the national average and in urban categories.

The Household Consumption Expenditure Survey, conducted between August 2023 and July 2024, provides important insights into spending trends, helping to measure poverty, inequality and economic well-being.