WHAT IS HCES?

HCES is a national-level survey conducted by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) in India. HCES Collects information from households on their monthly spending across food and non-food items such as clothing, housing, medicines, education, travel, electricity, and entertainment.
 

It measures and compares Monthly Per Capita Consumption Expenditure(MPCE). MPCE = Household’s total monthly expenditure ÷ Number of household members.
 

Purpose of the Survey

1. To analyze spending patterns in rural and urban households.
2. To assess poverty levels, since expenditure is treated as a proxy for income.
3. To help the government design policies (subsidies, PDS, education, health, employment).
4. To measure inequality across states, districts, and social groups.

Features of HCES

1. Conducted every 5 years since the 1950s.
2. The questionnaire of HCES 2022-23 contained 405 items as against 347 items in 2011-12.  In the present survey, three 3 questionnaires were used, covering:

• Food items;
• Consumables and services items, and
• Durable goods used.

3. Covers lakhs of households across all states and UTs. Example: 2023–24 HCES surveyed 2.62 lakh households (1.54 lakh rural + 1.08 lakh urban).
4. Data is widely used for:

• Fixing the poverty line
• Tracking standard of living
• Studying income and consumption inequality

Survey Process

1. Conducted every 5 years.
2. Random sample households selected from villages and urban blocks.
3. Households report expenditure on food and non-food items over the past 30 days / 365 days.
4. Data compiled by state, social group, and income class.

History of HCES

1. First survey: 1950s
2. Important surveys: 1993–94, 2004–05, 2011–12 (used for poverty estimates).
3. 2017–18 survey: Conducted, but report not released.
4. 2022–23 survey: (Aug 2022 – Jul 2023), report released in Feb 2024.
5. 2023–24 survey: (Aug 2023 – Jul 2024), report released in Jan 2025 – this is the latest survey.

 Key Findings (2023–24 HCES)

1. Expenditure More Than Doubled

2. Food vs Non-Food Expenditure

• Share of food in monthly spending declined:
   

  Year	Rural Share (%)	Urban Share (%)
  2011–12	53.0%	42.6%
  2023–24	47.0%	40.0%

• Top food contributors: processed foods, milk products, vegetables.
• Cereals’ share fell to just ~5%.

3. State-Wise Situation

• Highest urban-rural gap: Jharkhand (83%)
• Lowest gap: Kerala (18%)
• Example MPCE (without imputation):

  • State	Rural MPCE (₹)	Urban MPCE (₹)	Urban–Rural Gap (%)
    Andhra Pradesh	5,327	7,182	35%
    Bihar	3,670	5,080	38%

     

4. Inequality (Rich vs Poor)

• Gini Coefficient declined

• Bottom 5% vs Top 5% gap reduced; calorie intake differences narrowed.
• Highest MPCE observed in “Others” social category (Rural ₹4,642 | Urban ₹7,832).

5. Non-Food Expenditure

• Urban areas: travel (8.5%) was the biggest non-food item.
• Health, education, and durables also saw significant spending.

6. Nutritional Intake

• Cereals remain the main protein source, but share is falling as diet diversifies.
   

 Conclusion

1. Living standards in India have improved — household expenditure more than doubled over a decade.
2. Food share fell, with households spending more on education, health, housing, and travel.
3. Inequality has reduced slightly, but rich–poor differences remain large.

4. 

5. It can be inferred from the data presented in the survey that the difference between Rural and Urban MPCE has narrowed substantially over the years, implying the success of government policies in improving Rural incomes.
6. While the difference is more pronounced at the lower levels, the gap is bigger at the top, reflecting an increase in inequality at higher income levels.
7. The poorest Rural households have been able to spend at a much closer level to their Urban Counterparts, implying that government’s policy initiatives for enhancing Rural incomes have worked to an extent.