MoSPI Survey Shows India’s Household Spending Shift from Food to Services and Housing
January 10, 2026
The Ministry of Statistics and Programme Implementation (MoSPI) conducted the Household Consumption Expenditure Survey (HCES) for 2022-23 and 2023-24. This survey updates Indian household spending patterns after more than ten years. It measures Monthly Per Capita Expenditure (MPCE) for rural and urban areas. Data show a clear shift in how Indians spend money.
Spending on food and beverages as a share of total expenses has dropped. In urban areas, it fell from ₹48 to ₹39 per ₹100 spent. In rural areas, it declined from ₹59 to ₹47. This fits Engel’s Law, which says the richer people get, the smaller the share spent on food.
Within food, spending on cereals decreased. Meanwhile, money spent on fruits, eggs, fish, and processed foods rose, indicating a move toward more varied diets. Spending on pan, tobacco, and intoxicants remains low, under ₹3.8 per ₹100, with small rural rises signaling a need for health awareness.
Fuel expenses fell, reflecting rural electrification and LPG access programs. Urban fuel spending also declined, possibly due to energy-efficient appliances and stable power supply. The switch from biomass or kerosene to modern fuels shows better living standards.
Clothing, bedding, and footwear spending dropped slightly, likely due to fast fashion and lower textile prices. Rural spending in this category remains close to or above urban levels, showing seasonal needs and growing aspirations.
Urban housing rent costs jumped sharply from ₹4.46 to ₹6.58 per ₹100, driven by migration and urbanization. Rural rent costs stayed minimal because most homes are self-owned or informal.
The miscellaneous category, including health, education, transport, and consumer services, gained a bigger share, especially in rural areas (rising from ₹21.87 to ₹35.82 per ₹100). This signals a wider and more aspirational set of expenses, tied to inclusive growth and better public and private services.
Overall, India’s consumption patterns are shifting from basic needs toward more services and lifestyle expenses. The data come straight from MoSPI and cover 1999-2000 to 2023-24. The writer is a Deputy Director with the Ministry.
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Tags:
Household Consumption
Mpce
India
Mospi Survey
Poverty Estimates
Consumption Trends
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