What tells us more about prosperity: Consumption or GDP per head?
9 months ago

What tells us more about prosperity: Consumption or GDP per head?

Live Mint  

Maharashtra and Rajasthan are among India’s large states in terms of population. However, as per recently released data on household consumption expenditure for 2022-23, nominal as well as real spending per person in rural Rajasthan was higher than in rural Maharashtra. If the share of labour income in gross value added is relatively low and falling, then per capita output would exaggerate the state’s average prosperity. Although urban residents, on average, have higher consumption spending than their rural counterparts within each state, there are instances where the average rural resident in some states outspends the average urban resident in other states. For example, Punjab and Kerala are home to India’s most prosperous rural zones, displaying higher per capita real expenditure than urban Odisha, Madhya Pradesh, West Bengal, Uttar Pradesh and Bihar.

India Rajasthan Bihar Rural Maharashtra States Gujarat Urban Income Urban Areas Consumption Spending State Average Real Higher Labour Income Prosperity Nsdp  rural  state  higher  income  prosperity  real  head  spending  consumption  average  tells  gdp  urban  states

History of this topic

Richest and poorest Indian states: Which ones contributed the most GDP and had the highest income?
3 months ago

Richest and poorest Indian states: Which ones contributed the most GDP and had the highest income?

Hindustan Times  

Southern Indian states have surged ahead of northern states after liberalisation, in terms of contribution to India's GDP as well as having higher-than-average per capita incomes, according to a Business Today article which cited an Economic Advisory Council report to the Prime Minister released on Tuesday, September 18, 2024. Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu collective account for …

Rural-Urban Consumption Dynamics in India
6 months, 1 week ago

Rural-Urban Consumption Dynamics in India

Deccan Chronicle  

Over the past decade, India has witnessed a notable rise in consumption spending in both rural and urban areas, indicating a shift in economic dynamics and lifestyle choices. Furthermore, the changing food habits of the Indian populace have contributed to the evolving consumption patterns observed in both rural and urban areas. In conclusion, the equivalent rise in consumption spending in …

Sanjeev Ahluwalia | The politics behind India’s rural and urban spending
9 months, 3 weeks ago

Sanjeev Ahluwalia | The politics behind India’s rural and urban spending

Deccan Chronicle  

Household consumption expenditure estimates are based on a national survey of 0.1 per cent of the 194.9 million rural and 89.5 million urban households/families. The corresponding share of expenditure on food increases from 46.4 per cent in rural areas to 47 per cent and from 39.2 per cent in urban areas to 40 per cent. Rural consumption, as a proportion …

SBI Research backs NSSO report, credits Modi govt for decline in India's consumption inequality
9 months, 3 weeks ago

SBI Research backs NSSO report, credits Modi govt for decline in India's consumption inequality

Op India  

On Tuesday, a research report published by the State Bank of India corroborated the findings of the Household Consumption Expenditure Survey, which was conducted by the National Sample Survey Office. Decadal changes in MPCE show decline in consumption inequality, graphic via SBI Research “Rural Poverty has thus staged a significant 440-basis point decline since 2018-19 and Urban Poverty a 170-basis …

Positive GDP Surprise: Growth in Private Consumption Remains Critical
11 months, 2 weeks ago

Positive GDP Surprise: Growth in Private Consumption Remains Critical

News 18  

The government’s first advance estimate of the Gross Domestic Product for the current fiscal, which will end in March, has been a positive surprise for most economists. Rajani Sinha, the Chief Economist of CARE Ratings, said MOSPI’s projection of the GDP “seems to be relatively optimistic, surpassing the RBI’s estimate of 7% and our own projection of 6.8 per cent”. …

Shelved 2017-18 consumption spending survey showed inequality widening in Maharashtra
1 year, 5 months ago

Shelved 2017-18 consumption spending survey showed inequality widening in Maharashtra

The Hindu  

For urban households in Maharashtra, food costs crossed 40% of monthly spends in 2017-18, for the first time in 18 years, while the food bill for their rural counterparts shot up to almost 49% of total spending, with that figure crossing 60% for the poorest 5% of households., data from the National Statistical Office’s 2017-18 Household Consumption Expenditure Survey or …

People in smaller states fared better in consumption
1 year, 7 months ago

People in smaller states fared better in consumption

Deccan Chronicle  

HYDERABAD: In spite of global headwinds, India has registered a highest-ever collection of Goods and Services Tax in April, attesting the country’s impressive economic growth. According to the break-up of state-wise GST collection provided by the Union finance ministry, only six states have contributed more than Rs 10,000 crore to the coffers. Karnataka stood as the distant second in the …

A poverty trend in search of an explanation
2 years, 6 months ago

A poverty trend in search of an explanation

The Hindu  

A noticeable absence in the blitzkrieg of information on the economy periodically unleashed by the Union government over the past few years has been estimates of poverty. While the level of poverty estimated by these two studies varies considerably, with the one by Roy and van der Weide showing twice the poverty level estimated by Bhalla et al., they share …

Private consumption expenditure and demand: Please ma’am, we need some more
2 years, 10 months ago

Private consumption expenditure and demand: Please ma’am, we need some more

Live Mint  

Slowdown in personal consumption is the single biggest problem facing our economy. The double whammy of lower employment and Covid-19 has meant a significant reduction in consumption for low and lower-middle income households. This has meant a delayed recovery on many key sources of consumption – automotive, high value durables, OOH and discretionary spends like retail, restaurants and personal care. …

Bihar’s new govt will have a lot on its plate to mend
4 years, 1 month ago

Bihar’s new govt will have a lot on its plate to mend

Live Mint  

The per capita income of Bihar is a third of the national average. The Economic Survey of Bihar explains this by saying: “The low ratio indicates banks are not making full use of their resources for promoting economic activity in the state”. The Economic Survey of Bihar equates the low credit-deposit ratio in the state to a flight of capital …

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