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Householdexpenditures:IndiaIndpaedia

Householdexpenditures:India
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archivedfortheexcellenceof
theircontent.

Contents

Deprivedruralpopulation,statewise:Chhattisgarh,Meghalaya,Odisha,NagalandandWestBengalGraphic
courtesy:TheTimesofIndia(http://epaperbeta.timesofindia.com/Gallery.aspx?
id=04_07_2015_028_021_001&type=P&artUrl=THETIMESOFINDIA04072015028021&eid=31808)

12012:Poorinvillages
liveonRs17aday,in
townsonRs23aday
1.1Topandbottom
5%
1.2Food
1.3Nonfooditems
2201112,13:Maximum
incomeinrural
households
3201215:Riseinurban
consumption
4Assetownership:Rural
households
4.1Ownershipof
moveableassets
amongdifferent
socialgroups
5Incomedisparity:India
5.1Income
disparitybetween
http://indpaedia.com/ind/index.php/Household_expenditures:_India

Deprivedruralpopulation,statewise:Bihar,MP,Mizoram,JharkhandandManipurGraphic
courtesy:TheTimesofIndia(http://epaperbeta.timesofindia.com/Gallery.aspx?
id=04_07_2015_028_021_001&type=P&artUrl=THETIMESOFINDIA
04072015028021&eid=31808)

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rich&poor
growingrapidly
5.1.1
Consumption
expenditure
between2000
and2012:
India
5.1.2
Expenditure
perpersonon
food
5.2Incomeand
consumption
5.3Community
wisedisparities
6Ruralandurban
spending
6.1Gujaratslides
down
6.2AmartyaSen
backsBihars
growthmodel
6.3Andhra,TN
climbonprogress
graph
6.4Andhra,The
bestperforming
state
6.5Growthratesof
household
expenditures
7Householdsincities
7.1UrbanIndia:No
sourceofincome
for35lakhs
households
8HowIndiansspendtheir
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money
8.1
HEALTHCARE
8.2EDUCATION
8.3FOOD
9Seealso

2012:PoorinvillagesliveonRs17aday,intownsonRs23aday
MahendraSingh,
TNN|Jun21,
2013
TheTimesofIndia

India:Averagemonthlyhouseholdconsumptionexpenditureperperson,200412.Source:TheTimesofIndia
(http://epaperbeta.timesofindia.com//Gallery.aspx?id=11_07_2014_012_005_003&type=P&artUrl=STATEOFTHESTATES
11072014012005&eid=31808)

(http://timesofindia.indiatimes.com/india/PoorinvillagesliveonRs17adayintownsonRs23adaySurvey/articleshow/20690610.cms)
PoorinvillagesliveonRs17aday,intownsonRs23aday:Survey

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TheaveragemonthlyspendingonallIndiabasiswasaroundRs1,430forruralIndiaandaroundRs2,630forurbanIndia,agovernment
surveyhasrevealed.NEWDELHI:ThepoorinruralareasspendonlyRs17perdaywhilethoselivingincitiesandtownsspendRs23aday,
agovernmentsurveyhasrevealed.

Topand
bottom5%
Thebottom5%of
thepopulationhad
anaverage
monthlypercapita
expenditureofRs
521.44inrural
areasandRs
700.50inurban
areas,accordingto
NationalSample
Survey(NSS)data
for201112(July
June).
Thetop5%ofthe
populationhadan
averagemonthly
spendingofRs
4,481permonth
inruralareasand
Rs10,282in
urbanareas.

Consumptionpatterns:TheTimesofIndia(http://epaperbeta.timesofindia.com//Gallery.aspx?
id=03_09_2014_007_043_003&type=P&artUrl=CHEWONTHIS03092014007043&eid=31808)

Whilethereisnoupperlimitforspendingforthetop5%segment,themaximumspendingbythosefallingatthebottomoftheladderisRs
616amonth(Rs20.5aday)inruralareasandRs827(Rs27.5)inurbanareas.
TheaveragemonthlyspendingonallIndiabasiswasaroundRs1,430forruralIndiaandaroundRs2,630forurbanIndia.Thismeansthose
livingincitiesarespendingabout84%higherthantheirruralcounterparts.
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Food
Incitiesandtowns,foodaccountedfor42.6%ofthevalueofhouseholdconsumptionwhichincluded9%onbeverages,refreshmentsand
processedfood,7%onmilkandmilkproducts,and6.7%oncerealsandcerealsubstitutes.Educationaccountedfor6.9%,fuelandlight6.7%,
conveyance6.5%,andclothingandfootwear6.4%.
InruralIndia,foodaccountedfor52.9%ofthevalueofconsumptionthatincluded10.8%oncerealsandcerealsubstitutes,8%onmilkand
milkproducts,7.9%onbeverages,refreshmentsandprocessedfood,and6.6%onvegetables.

Nonfooditems
Amongnonfooditems,fuelandlightforhouseholdpurposes(excludingtransportation)accountedfor8%,clothingandfootwearfor7%,
medicalexpensesfor6.7%,educationfor3.5%,conveyancefor4.2%,otherconsumerservices(excludingconveyance)for4%andconsumer
durablesfor4.5%.
Eveninruralareas,spendingoncerealshasseenadecliningtrendasitcamedownfrom18%in200405to12%in201112.InurbanIndia,it
camedownfrom10.1%in200405to7.3%in201112.
Apartfrombeverages,noneofthefooditemssuchasgrams,pulses,milk,fish,vegetablesshowedanynoticeableincreaseinshareinboth
ruralandurbanIndia.Thespendingonpan,tobaccoandintoxicantsfellnoticeablyovertheyearssince199394thoughthedeclineappearsto
beflatteningout.
Thespendingon"miscellaneousgoodsandservices"category(includingeducation,medicalcareandentertainment)hasgrownsignificantly
from23.4%in200405to26%in201112inruralareasandfrom37.2%in200405tonearly40%inurbanareas.
Asfarasstatesareconcerned,consumptionexpenditureinvillagesofOdishaandJharkhandwerethelowest,followedbyBihar,Madhya
PradeshandUP.Inurbanareas,BiharhadthelowestexpenditurefollowedbyChhattisgarh,Odisha,JharkhandandUP.

201112,13:Maximumincomeinruralhouseholds
TheTimesofIndia(http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=92villagehomesrunonlessthanRs
04072015028031),Jul042015
SubodhVarma
92%villagehomesrunonlessthanRs10,000amonth
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GivingamorestoriedpictureofruralIndia,theSocioEconomicandCasteCensus(SECC)releasedsaysthatastaggering92%ofrural
householdsreportedtheirmaximumincomebelowRs10,000permonth.Nearlythreequartersofallruralhouseholdssaidthattheincomeof
thehighestearningmemberwasRs5,000orless.TheSECCwasconductedduring201112withsomestatescompletingitin2013,duetoa
lengthyprocessofseekingobjectionsoncollecteddata.Itfoundthatabout18crorehouseholdslivedinrural
areas,includingoutgrowthsoftowns.
TheSECCfoundthatover9crorehouseholdswerelivingbydoingcasualmanuallabour.That'smorethan
halfofallruralhouseholds.Cultivatorswerereportedasnumbering5.39crorehouseholds,makingupabout
30%.Themuchheraldednonagriculturalenterpriseswereprovidinglivelihoodtojust29lakhhouseholds,a
meagre1.6%ofthetotal.
ThereseemstobeasignificantdifferencewithCensus2011figures.TheCensuscountspeople,and
accordingtoit,in2011therewere9.2crorecultivatorsand8.1croreagriculturallabourers.Thiswould
translatetoabout2crorecultivatorhouseholdsand1.7croreagriculturallabourerhouseholds.
However,AbhijitSen,formermemberofthePlanningCommissionwhowasinvolvedindesigningthe
survey,toldTOIthatthiscomparisonshouldnotbedonebecausetheSECCaskedaboutincomeswhilethe
Censusaskedaboutwork.
Also,everybodyinahouseholddoesn'twork.SoconvertingCensusbasedworkerfigurestohouseholdswill
notgiveatruepicture,headded.
Butononeissue,theSECCisperhapsbetterreflectingthelivesofruralpeople.TheCensusgivesfiguresfor
`agriculturallabourers'whereastheSECCgivesfiguresforthoseworkingascasualmanuallabourers,which
isnotconfinedtoagriculturallabouralone.Duetopressureonland,fragmentation,andlowreturns,avast
armyofpeople,bothmenandwomen,areturningtoanykindofcasuallabourtoearnaliving.
Eachruralhouseholdwillhavedifferentkindsofcasualworkers.TheSECCisreflectingthisreality,Sen
said.
SECCreportsthatonlyabout10%ofruralhouseholdshavesalariedjobs.Ofthese,abouttwothirdsarein
publicsector,andathird,6.4lakhinall,workregularprivatesectorjobs.And,lessthan5%oftherural
householdspayincometaxorprofessionaltax.Thisismainlybecauseagriculturalincomeisnottaxedand
withover92%householdsearninglessthanRs.10,000,mostdon'tqualify.

201215:Riseinurbanconsumption
http://indpaedia.com/ind/index.php/Household_expenditures:_India

Ruralhouseholds:Monthly
incomeandemployment
profileGraphiccourtesy:The
TimesofIndia
(http://epaperbeta.timesofindia.com/Ar
eid=31808&articlexml=92
villagehomesrunonless
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TheTimesofIndia(http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Urban
consumptionshowssignsofrevival20082015021032),Aug202015

thanRs04072015028031),
Jul042015

Urbanconsumptionshowssignsofrevival
RupaliMukherjee
Urbanconsumptiongrowthappearstobeshowingsignsofimprovement,withthe
fastestgrowingsegmentsforthetop200citiesbeingmultiplexes,retailapparel
andquickservicerestaurants.Notonlyconsumptionpatterns,jobopportunitiesand
financialinfrastructurehavealsoshownarevivaloverafouryearperiodsince
March2011.GivenIndia'sfavourabledemographicsandrisingincome,thestage
issetforurbanizationgrowthtocontinueforyearstocome,thoughthedensityof
thedriversisstillnotenoughtomeettherequirementsandincomeofthe
population,analystssay.Since2011,growthinthefinancialinfrastructureindex
hasoutpacedthatoftheotherindices(consumptionandjobopportunities).
Financialinfrastructurehasbeenthefastestgrowingsegmentamongthethree
indices,withATMsbeingthekeydriverforthestronggrowth,saysananalysis
donebyMorganStanleyofover250citiesacrossthecountry.

Indiancitiesongrowthpath,top50andtop200,201215
Graphiccourtesy:TheTimesofIndia
(http://epaperbeta.timesofindia.com/Article.aspx?
eid=31808&articlexml=Urbanconsumptionshowssignsof
revival20082015021032),Aug202015

TheATMtobankratioroseto1.3xfrom0.8xsinceMarch2011forthetop50cities,whileforthetop200cities,itincreasedto1.2xfrom
0.7x.TheannualgrowthinATMsisabout25%forthetop50and200cities.Infact,thetop200citiesshowedthefastestgrowthinthe
consumptionindexsinceMarch2011,whileoverallitshowedastableandsteadygrowththroughtheperiod.Multiplexes,followedbyluxury
carsandrestaurants(newagefoodchains)havebeenthefastestgrowingcomponentswithintheconsumptionindex,whileretail
hypermarketshavebeenthebiggestlaggardintermsofgrowth.Thesharesofluxurycardealershipsandmultiplexeshavegrownthemostin
theconsumptionbasketduringtheperiod,atthecostoflostsharesforretailhypermarketsandnonluxurycardealerships.TheAlphaWise
CityVibrancyIndex(ACVI)studiedthedriversofurbanizationandtherateofchange,withkeyingredientsincludinginfrastructure,job
opportunities,modernconsumerservices,andacity'sabilitytomobilizesavings.Ona12monthbasis,however,theACVIforthetop50cities
grew13%YoYasagainst15%YoYinF2014.Theconsumptionindexshowedaslightaccelerationingrowthto13%yearonyear,whilejob
opportunitiesandfinancialInfrastructuredeceleratedto8%and17%inF2015asagainstagrowthof12%and20.5%respectivelyinF2014.

Assetownership:Ruralhouseholds
TheTimesofIndia(http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Owningcarsstilladreamformany
04072015014025),Jul042015
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AtulThakur
Owningcarsstilladreamformany
DatafromtheSECConassetownershipofruralhouseholdsshowsthestarkreality
ofIndia'scountryside.Motorisedvehicles,telephones,refrigeratorsandagricultural
equipmentareadreamformostofourruralpopulation.Twoofevery10rural
householdsownmotorisedvehicles,mostlytwowheelers.Comparedto31.2
millionhouseholdsowningtwowheelers,4.4millionfamiliesownfourwheelers.
Thistranslatesto17.4%and2.5%ofruralhouseholds.Only11%ofruralhomes
haverefrigerators.Thismaylinkedtopoorpublictransportandelectricitysupplyas
wellaslifestyledifferencesbetweenruralandurbanIndia.Althoughmostofthe
ruralpopulationdependsonagricultureforlivelihood,lessthanonetenthowns
irrigationequipment.Ownershipofmechanisedagriculturalequipmentislower:
4.1%.Government'sfinancialinclusioninitiativeslikeKisanCreditCard,aimedat
providingaffordablecredittofarmers,havealowpenetrationrate.Only3.6%have
thesecardswithlimitsaboveRs50,000.
Onepositivethatstandsoutisthepenetrationofcellphones.Over68%village
homeshavethese.Yet,therestillareabout28%thatdon'townmobilesor
landlines.

Ruralhouseholds:AssetsownershipGraphiccourtesy:The
TimesofIndia
(http://epaperbeta.timesofindia.com/Article.aspx?
eid=31808&articlexml=Owningcarsstilladreamfor
many04072015014025),Jul042015

HighlyurbanisedstatesandUTswithsmallruralpopulaceGoa,Delhi,Puducherry
,Chandigarhhavealargerproportionofhouseholdsowningtheseassets.
RuralhouseholdsinPunjab,Haryana,TN,KeralaandGujaratarebetteroffthanthoseinAssam,Bihar,Chhattisgarh,OdishaandBengal.

Ownershipofmoveableassetsamongdifferentsocialgroups
TheTimesofIndia(http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=STATOISTICSCASTEAWAY
09072015008027),Jul092015
ThedatafromthesocioeconomicandcastecensusofruralIndiashowsthescarcityofmanyassetslikevehicles,refrigeratorsandtelephones
thatareassumedtobenecessitiesofmodernlife.Acomparisonofassetownershipamongdifferentsocialgroupsshowsthatthedeprivationis
farmoreinSCandSTwhencomparedtoothers.Forinstance,twoineveryten`other'householdsownmotorizedvehicles.Thecorresponding
figureforSCandSTisjustoneineverytenhouseholds.Thepatternisnodifferentforrefrigerators,mobilephones,mechanizedagricultural
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equipment,irrigatedlandandsoon.

Incomedisparity:India
Incomedisparitybetweenrich&
poorgrowingrapidly
In12UrbanRichEarned15TimesMoreThanPoor
SubodhVarmaTIG
TheTimesofIndia

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SajeevKumarapuram

(http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?
From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2013/07/28&PageLabel=2&EntityId=Ar00201&ViewMode=HTML)
2013/07/28
Everybodyknowsthatthereisachasmbetweentherichandthepoor.Butcanitbe
measured?And,moreimportantly,isthisdisparitygrowingorcomingdown?

Consumptionexpenditurebetween2000and2012:India
Newdatabasedonconsumptionexpendituresurveysshowsthatincomedisparityis
growingandatarapidclip.Spendingandconsumptionbytherichest5%zoomedup
byover60%between2000and2012inruralareaswhilethepoorest5%sawan
increaseofjust30%.Inurbanareas,therichestsegmentsspendingincreasedby63%
whilethepoorestsawanincreaseof33%.Theeffectofinflationwasremovedwhile
makingthesecomparisons.
Heresanotherwayyoucanlookatthesedisturbingresults:in2000,theaveragespend
(orincome)oftherichestgroupinurbanareaswas12timesthatofthepoorestgroup
in2012,ithadincreasedto15fold.Inruralareas,thedisparitybetweenthehavesandthehavenotsincreasedfrom7timesto9timesinthese
12years.
Thesestarkfindingsemergefromacomparisonofdataonhouseholdspendingpatternsfor19992000and201112.Thesearecollectedbythe
NationalSampleSurveyOrganisation.Consumptionspendingthatis,allpossibleexpendituredonebyanindividualinahouseholdonall
aspectsoflifeistheclosestmeasureofincomesavailableinthecountry.
Clearly,economicpolicythatresultedinhighGDPgrowthformostofthisperiodhasnottrickleddowntotheneediest.Rather,itappearsto
bebenefittingthealreadyaffluentsectionsmore.===Growthhighestforrichest10%,lowestforpoorest10%===
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Manyexpertsarguethatspendingandhenceincomeoftheuppermost5%isnotcompletelyreflectedinNSSOsurveysbecausethosewhodo
theirsurveyshardlymanagetomeetandfilloutquestionnairesofthesuperrichhouseholds.Inotherwords,theincomesofthesuperrichare
probablymorethanwhatisreflectedinthisdata.
Therichest10%ofIndiansocietyhaveseenhighestgrowthwhilethepoorest10%haveseentheslowestincreaseinincomes.Theremaining
80%ofthepeoplehaveseenroughlythesamelevelsofgrowthrangingbetween35%and40%inruralareasandbetween40%and50%in
urbanareasover12years.Thatmeansthatfor90%ofpeople,annualgrowthinincomewasjustover3%inruralIndia,andjustover4%in
urbanIndia.
In2012,apersonofthepoorestsegmentinruralareaswasspendingjustRs521permonth.So,afamilyoffourwouldspendaboutRs2,084
permonth.Intherichestsegment,apersonspentRs4,481permonthwhichwouldtranslateintoamonthlyspend(orincome)ofRs17,925for
afamilyoffour.Inurbanareas,monthlyspendingbythepoorestsegmentwasRs700perpersonorRs2,802forafamilyoffourandforthe
richestgroupitwasRs10,282perpersonorRs41,128forafourmemberfamily.

Expenditureperpersononfood
Detailsofspendingondifferentitemsprovidedbythereportshowthatinurbanareas,monthlyexpenditureperpersononfoodwaslessthan
Rs1,000for50%ofthepopulationwhileintherichestsegmenteverypersononanaveragespentRs2,859.
Someofthefooditemsshowingvastdisparitybetweenrichandpoorincludedvegetables,fruits,eggs,fishandmeat,andmilkproducts.
Thedatablowsthemyththatpoorersectionsareconsumingmoreoffruits,eggs,etc.
Asimilarmultifolddifferenceisseeninotherkeyitemsofexpenditurelikeeducation,medicalanddurablegoods.

Incomeandconsumption
TimesofIndia(http://epaper.timesofindia.com/Default/Client.asp?
Daily=CAP&showST=true&login=default&pub=TOI&Enter=true&Skin=TOINEW&AW=1393708348876)

Communitywisedisparities
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MuslimshavelowestlivingstandardinIndia:Govtsurvey
PTI|Aug20,2013
Muslimswereatthebottominrural
areas,withanaveragemonthlyper
capitaexpenditureofRs833,followed
byHindusatRs888,ChristiansatRs
1,296andSikhs1,498.NEWDELHI:
Amongvariousreligiousgroups,
Muslimshavethelowestlivingstandard
withtheaveragepercapitaexpenditure
ofjustRs32.66inaday,saysa
governmentsurvey.
Attheotherendofthespectrum,Sikh
communityenjoysamuchbetter
lifestyleastheaveragepercapita
spendingamongthemisRs55.30per
day,whilethesameforHindusisRs
37.50.ForChristiansitisRs51.43.
"AtallIndialevel,theaveragemonthly
percapitaexpenditure(MPCE)ofa
SikhhouseholdwasRs1,659whilethat
foraMuslimhouseholdwasRs980in
200910,"saidanNSSOstudytitled
'EmploymentandUnemployment
SituationAmongMajorReligious
GroupsinIndia'.
TheaveragehouseholdMPCEisaproxyforincomeandreflectsthatlivingstandardsofafamily.
Accordingtothestudy,theaverageMPCEforHindusandChristianswereRs1,125andRs1,543,respectively.
ThesurveysaidthataveragemonthlypercapitaconsumptionatallIndialevelwasRs901invillagesandRs1,773incities.Overall,the
averageMPCEwasRs1,128.
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Muslimswereatthebottominruralareas,withanaverageMPCEofRs833,followedbyHindusatRs888,ChristiansatRs1,296andSikhs
1,498.
Inurbanareas,Muslims'averageMPCEwasalsothelowestatRs1,272followedbyHindusatRs1,797,ChristiansRs2,053andSikhsatRs
2,180.

Ruralandurbanspending
Gujaratslidesinbothrural&urbanspending
DataRaisesDoubtOverDevptModel
SubodhVarmaTIMESINSIGHTGROUP
TheTimesofIndia(http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?

From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2013/07/22&PageLabel=1&EntityId=Ar00102&ViewMode=HTML)
2013/07/22
Howarepeopleintheirstatesactuallyfaring?Howdoesoneknowwhetheronedevelopmentmodelisbetterthananother?
Onewayistolookathowmuchapersonspendsonanaverageeverymonththisgivesanindicationofhowmuchpeopleareearning.
Comparingrecentlyreleaseddataonconsumerexpenditurewithdatafromadecadeagoprovidesafairideaofwhichstategovernmentsare
deliveringandwhicharesliding.Theresasurpriselurkingthere.

Gujaratslidesdown
Gujarathasslidfromfourthtoeighthintherankingofstatesforruralspends,andfromseventhtoninthinurbanexpenditure,accordingtoa
comparativeanalysisofdataonmonthlypercapitaspendingbetween201112and19992000,bothofwhichareputoutbytheNational
SampleSurveyOrganisation.
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AmartyaSenbacksBiharsgrowthmodel
NobellaureateAmartyaSenonSundaybackedBiharsgrowthstrategyarguingthatgrowthwasnotindependentofsocialtransformation.
Whatisneededisanintegratedapproachfordevelopmentandgrowth,Sensaidatabookreleaseevent.Thenotedeconomistsuggestedthat
withouteducationandproperhealthfacilities,itwasdifficulttoachievebalancedgrowth.Educatedlabourforceisthebiggestguarantor.
EducationandhealthylabourforceisabletoproduceeverythingfromITtoautoparts,Sensaid.
Atthesametime,herecognizedtheimpressivegrowthrate,ofover11%,recordedbytheeasternstateduringthe11thfiveyearplan(2007
2012)andsaiditwasanimportantindicator.
SenspraisefortheBiharmodelissignificantbecausethebuilduptothegeneralelectionshasalsobeenframedasaduelbetweencompeting
modelsofgrowth.OneistheinclusivegrowthmodelwhichUPAandBiharclaimtorepresent,whichwonpraisefromSen.Theother,
Gujaratsemphasisonhigherrateasthesolutiontopovertyreduction,isbackedbythelikesofJagdishBhagwatiandArvindPanagariya.
Whilethestaterankspoorlyonmosthumandevelopmentindicators,itsperformancehasimprovedinrecentyears,whicheconomistssayis
drivenbybetteradministrationandstepstoimproveliteracyandhealthfacilities.Biharisdemandingspecialstatestatustoaccessmore
centralfundsandoffertaxincentivestoattractinvestmenttobolsteritsgrowthanddevelopment.ChiefministerNitishKumarhasbeenatthe
forefrontofthedemandandevenorganizedarallyinthenationalcapitaltopressforthetag.
RenownedeconomistNicholasStern,whohascoeditedthebookwithRajyaSabhamemberNKSingh,pushedforaspecialstatustag.From
thepointofviewofpoverty,distributionofincomeandpointofviewofdemonstratingchange,aspecialcategorystatuswouldbe
appropriate,hesaid.

Andhra,TNclimbonprogressgraph
Gujaratmaybetheposterboyofdevelopmentandeconomicgrowth,butisoneofthefewstatesthathaveslidineconomicrankings.
ConsumptionexpenditureofpeopleinGujaratisgrowingataslowerratethanthenationalaverage,accordingtoacomparativeanalysisof
dataonmonthlypercapitaspendingbetween201112and19992000,bothofwhichareputoutbytheNationalSampleSurveyOrganisation
(NSSO)

Andhra,Thebestperformingstate
ThebestperformingstateisAndhra,whichhasdramaticallyimprovedfrom11thplacein2000tofifthin2012inruralhouseholdsandfrom
11thtosixthinurbanhouseholds.

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AnotherstatethathasshownmajormovementinrankingsisTamilNadu,movingdownfromsecondtoseventhplaceinurbanpercapita
expenditurebutimprovingfromsixthtofourthinrural.
Kerala,Punjab,Haryana,TNandAParethetopfivestatesinruralhouseholdsHaryana,Kerala,Maharashtra,KarnatakaandPunjabarethe
topfiveinurbanhouseholds.

Growthratesofhouseholdexpenditures
Thesamerealityisreflectedingrowthratesofhouseholdexpendituresovertheperiod.Atthenationallevel,averageperpersonspendsgrew
by165%inruralareasand190%inurbanareasbetween2000and2012.AmongthestateswithMPCEgrowthofurbanhouseholdslowerthan
thenationalaverage,Gujarat(177%)liestiedwithRajasthan,lowerthanUttarPradesh
andWestBengalbuthigherthanAssamandTN.
Amongruralhouseholds,percapitaspendinGujaratgrewby165%,againbelowthe
nationalaverageof170%.MostofthepoorerstateslikeUP,Bihar,MPandOdisha
werealsobelowthenationalbenchmark.InHaryanatooruralincomesarebarelyabove
thenationalaverage.
Attheotherend,thestateswithhighexpendituregrowthwereAP,Kerala,Punjab,
Maharashtrainbothruralandurbanareas,withTNonlyjoiningtheleadersfor
ruralhouseholds.

Householdsincities
Averagehouseholddebtincitiesup7timesin10years
TheTimesofIndia(http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=Averagehouseholddebtincitiesup7times
22122014001017)
Dec22,2014SubodhVarma
22%ofurbanfamilieshaveloanstorepay

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Nearlyathirdofruralhouseholdsandaquarterofurbanonesareindebt,saysareportreleasedthisweek.Thisisunderstandablewiththe
spreadofcreditfacilities.Butthescaleofindebtednessrevealedisastonishing:between2002and2012,theaverageamountowedbyeach
familyhasjumpedseventimesincitiesandmorethanfourtimesinruralareas.
About22%ofurbanhouseholdswereindebtandtheaveragedebtperfamily
wasRs84,625,upfromRs11,771in2002.Intheruralareas,31%of
householdswereindebtcomparedto27%in2002theiraveragedebthad
increasedfromRs7,539toRs32,522.Thesurvey,carriedoutbytheNational
SampleSurveyOrganization(NSSO),studiedassetsanddebtacrossIndia
throughtwovisitstomorethanonelakhhouseholdsin2013.Suchsurveysare
donebytheNSSOevery10years.
Averagedebtiscomputedbydividingthetotaldebtbytotalpopulation,which
includeshouseholdsthathavenodebt.Abetterpictureofthescaleof
indebtednessisseenifthetotaldebtisdistributedonlyovertheindebted
households:thentheaveragedebtincreasestoRs1,03,457inruralareasandRs
3,78,238inurbanareas.Thesurveyalsoestimatedthataveragevalueofassets
amongruralhouseholdswasaboutRs10lakhwhileinurbanareasitwasnearly
Rs23lakh.

Debtlevelsinurbanandruralhouseholds2002and2012

Thedefinitionofassetsusedthistimeroundwaschangedfromthatofprevioussurveys.Consumerdurables,bullionandjewellerywerenot
countedasassets.Also,pricesoflandandbuildingweretakenfromnormativeguidelinevaluesratherthanasreportedbythe
informant.Hence,assetvaluesreportedinthissurveyarenotcomparabletopreviousones.Whatisstrikinginassetownershipistheextreme
inequalitybetweenrichandpoor.Whiletheaveragevalueofassetsownedbytherichest10%oftheurbanpopulationwasRs14.6crore,the
poorest10%ownedassetsworthjustRs291virtuallynothing.Inruralareastoo,similarinequalityisvisible.Theaverageassetvalueofthe
richestsegmentwasRs5.7crorecomparedtoRs2,507forthepoorest.
Expectedly,widevariationisseeninassetownershipdependinguponvocation.Inruralareas,cultivatorsownedassetsvaluedonanaverage
atRs29lakhwhilenoncultivatorshadassetsworthaboutRs7lakh.Similarly,inurbanareas,selfemployedfamilieshadassetsworthas
muchasRs51lakhcomparedtoaboutRs20lakhworthofassetsownedbywageorsalaryearners.
Theenormouscontributionofrealestatepricestotheexplosioninassetvaluesisclearlyseeninthefactthatinruralareas,73%ofthevalueof
assetswasderivedfromlandand21%frombuildings.Inurbanareas,while47%ofassetvaluewasfromland,45%wasfrombuildings.
Inurbanareas,82%ofdebtisincurredtofinancehousing,education,marriagesetcandonly18%isforbusinesspurposes,showingthatthe
urbanhousingboomhasbeendrivenbydebt.Inruralareas,40%ofloansweretakenforbusiness.Interestingly,sharesanddebenturesmade
upaninsignificantpartinbothruralandurbanareasformost.Just0.07%ofassetvalueofruralhouseholdsand0.17%amongurbanones
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derivedfromsharesetc.

UrbanIndia:Nosourceofincomefor35lakhshouseholds
TheTimesofIndia(http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=35lakhurbanfamilieshavenoincome
04072015028032),Jul042015
35lakhurbanfamilieshavenoincome
Atleast35lakhfamiliesincitiesandtownshavenosourceofincomewhile90lakhhouseholdsareheadedbywomen,accordingtorawand
unreleaseddatafromtheSocioEconomicandCasteCensusinurbanareas,reportsDipakDash.About1crorehouseholdsownatleastoneof
fouritemsfridges,landlinephones,washingmachinesandtwowheelers86lakhhouseholdsownallthese.

HowIndiansspendtheirmoney
TheTimesofIndia(http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=HOWINDIANSSPENDTHEIRMONEY
13072014014005)Jul132014
What'seatingintoourfamilybudgets?SubodhVarmafindsout

HEALTHCARE
|TESTINGTIMES
We'veallfeltthepinchofmedicalbills,andnowdatafromarecentsurveyonhouseholdspendingshowswhyeveryone'sbeenfeelingthe
pain.Totalfamilyspendonmedicalbillsincreasedby317%inurbanareasand363%inruralareasforinstitutionalcare.Athomemedical
expensesincreasedbyabout200%inbothurbanandruralareas.
DiagnostictestsXrays,ECGs,andpathologicaltestsarethedrivingforceinthisrelentlessupwardmovement.
Forinstitutionalcareinhospitalsandnursinghomes,costsoftestsincreasedbyasmuchas541%inurbanareasbetween2000and2012.No
comparisonisavailableforruralareasinthesameperiodastestfacilitieswererareandmostlyfreeingovernmenthospitals.Evenfortheat
homepatient,costsofdiagnostictestszoomedupbyover400%inthesameperiod.

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Foranurbanfamilyoffour,averagemedicalexpenseswouldbeaboutRs200permonthforhospitalcareornearlyRs400permonthforat
hometreatmentandcare.Inruralareas,theaveragemonthlycostsforasimilarfamilywouldworkouttoaboutRs120forhospitalcareand
Rs250forathomecare.Thehighercostsevenathomearemainlybecauseofmedicines.
DespitetheenormousspendingonNationalRuralHealthMissionoverthepastsevenyears,andtheattemptstoexpandanaffordablehealth
insurancescheme,thecostincreasesaresubstantiallymoreinruralareascomparedtourbanareas.
Thus,increasesindoctors'feesinhospitalswere433%inruralareascomparedto362%inurban,hospitalchargeswentupby454%incharges
wentupby454%inruralareascomparedto378%inurbanareasandmedicinecostsinhospitalswentupby259%inruralversusabout200%
inurbanareas.Keepingthepatientathomeandgettingtreatedseemedabetteroptioninruralareasbecauseathomecostswerenotashighas
institutionalcosts.
Whatthiscarnageoffamilybudgetshasledtoisworryingbutunsurprising:therehasbeenadeclineincasesofhospitalization.Thenumberof
familiesthatreportedexpenditureonhospitalizationdippedfrom19%to14%inurbanareasandfrom19%to15%inruralareas.Lackof
properfacilitiesataccessibledistancesisalsoafactorindippingcasesofhospitalizationinruralareas.
Conversely,familiesthatspentonpatientcareathomeincreasedfrom61%to75%inurbanareasandfrom62%to79%inruralareas.The
newdataisfromaconsumerexpendituresurveycarriedoutbytheNationalSampleSurveyOrganisation(NSSO)in201112.

EDUCATION
|COSTOFFEES,TUITIONSSKYROCKETS
EvenasthethirstforeducationhasincreasedamongIndians,thesystemhas
becomemoreexpensiveanditsqualityhasgonedown.Familyspendingon
educationincreasedbyajawdropping390%inurbanareasin201112and433%in
ruralareascomparedto19992000.
Thebiggestincreaseisinthefeeschargedbyeducationalinstitutions628%in
urbanareasandanincredible924%inruralareas.Costsofotherrelateditemsof
expenditure,likebooksandstationery,toohaveshotupinthepast12years.
Thatthereisadeepfelturgetogetthechildreneducatedandthusbuildabetterlife
thantheireldersisundoubtedlytrue.Thisisconfirmedbythefactthatthenumber
offamiliesreportingspendingoneducationhasincreasedfrom68%to76%inurban
areasandfrom54%to66%inruralareas.
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Butthefamilieshavetobearaheavyburdenofthiscost.Inurbanareas,afamilyof
fourwouldspendRs726permonthonanaveragewhileinruralareasasimilar
familywouldspendRs200everymonth.
Apartfromthisdirectspending,variousothercostsarealsoincurredbyfamilies
includinguniformsforschoolgoingchildren,transporttoandfromtheschooland
otherincidentalcosts.
Thesurveyshedsomelightonwhatiscalledthe`shadoweducationsystem',thatis,
privatetuitionandcoaching.In2012,about12%offamiliesinruralareaswere
gettingtheirkids'educationboostedbytheseparallelestablishments,upfromseven
percentin2000.
Inurbanareasprivatecoachinghadspreadtoover17%familiesfrom15%in2000.
Costsofsuchprivatecoachinghaveincreasedbynearly300percentinurbanareas
and369%inruralareas.Educationspendingishighlydependentonhowmuchthe
family'sincomeis.Anditvariessharplybetweenruralandurbanareas.Therichest
5%familiesinurbanareasspendoverRs900perpersonwhilethepoorestspend
justRs16perperson.

Source:TheTimesofIndia
(http://epaperbeta.timesofindia.com/Article.aspx?
eid=31808&articlexml=HOWINDIANSSPENDTHEIR
MONEY13072014014005)

Inruralareas,therichest5%Inruralareas,therichest5%spendnearlyRs300perpersononeducationwhilethepoorestspendonlyeight
rupeesperpersoninamonth.

FOOD
THEALOOPYAAZTHALI
Everwonderedwhytheriseinpricesofonionsandpotatoessendsgovernmentsintoatizzy?Thereasonisthat91%familiesinruralareasand
86%inurbanareasconsumepotatoes.Similarly,96%familiesinruralareasuseonionsand91%inurbanareas.So,withpracticallythewhole
populationaddictedtothesetwovegetables,itissmallwonderthathighpricesgeteverybodyagitated.Italsoindicatesthatthosewhowantto
manipulatepricesandmakeaquickbuckaremostlikelytotargetonionsandpotatoesasveryfewwillcuttheseoutoftheirmeals.Ofcourse,
itispossibletohoardthesetwovegetablesbecausetheyarenotasperishableasmostothers.
ConsumptiondatafromarecentNSSOreportshowsthatapartfromonionsandpotatoes,tomatoisthemostwidelyusedvegetable,with75%
ofruraland85%ofurbanfamiliesconsumingit.Greenchilliesarealsoconsumedbyover80%ofthepopulation.

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Whataboutothervegetables?Spinachandotherleafyvegetables(ofwhichthereareseveralinIndia)areconsumedbyabout60%ofthe
population.Brinjal(oreggplant)isalsopopularnearly60%ofruraland54%urbanfamilieseatitspreparations.
Lady'sFinger(okra),cauliflower,cabbageandcarrotsaremorepopularinurbanthanruralarebutthewholegourdfamilysweet,long,bit
ter,bottlegourd,alongwiththepumpkinfamilyarefavouredmoreinruralareas,perhapsbecauseoftheireaseofcultivationandverylow
costs.
Totalmonthlyconsumptionofvegetablesisabout6.8kgperpersoninbothruralandurbanareas,perhapsoneoftheveryfewconsumption
itemswherethereisnoruralurbandivide.
Whataboutpulses,thesinglebiggestsourceofproteinforalargelyvegetarianpopulation?Worryingly,consumptionofpulseshadbeen
decliningovertheyears,mainlybecauseofitssustainedhighprices.Buttherehasbeenaslightrevivalinthepast23years.Eventhen,per
capitaconsumptionofpulseshasdippedbyabout7%between2000and2012.Arhar(tur)isthemostpopulardalwithabout60%ruraland
75%urbanfamiliesconsumingit.
Aboutaquarterofthepopulationreportedeatingfishormeat,whileabout38%familiesateeggs.Thenumberofnonvegetarianfamilieshas
probablydroppedbecausehighpricesoftendrivepeopletostopeatingmeatexceptonoccasions.Householdseatingfishandgoat/muttonhave
declinedsince2000whilechickenisnowthemeatofchoicewith22%ruraland27%urbanfamilieseatingit.

Seealso
Labour:India
Retrievedfromhttp://indpaedia.com/ind/index.php?
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Categories: India EconomyIndustryResources Development Name
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Thispagehasbeenaccessed6,319times.

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Source:TheTimesofIndia
(http://epaperbeta.timesofindia.com/Article.aspx?
eid=31808&articlexml=HOWINDIANSSPEND
THEIRMONEY13072014014005)

Source:TheTimesofIndia
(http://epaperbeta.timesofindia.com/A
eid=31808&articlexml=HOW
INDIANSSPENDTHEIR
MONEY13072014014005)

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Source:TheTimesofIndia
(http://epaperbeta.timesofindia.com/Article.aspx?
eid=31808&articlexml=HOWINDIANSSPENDTHEIR
MONEY13072014014005)

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Source:TheTimesofIndia
(http://epaperbeta.timesofindia.com/Article.aspx
eid=31808&articlexml=HOW
INDIANSSPENDTHEIRMONEY
13072014014005)
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Source:TheTimesofIndia(http://epaperbeta.timesofindia.com/Article.aspx?
eid=31808&articlexml=HOWINDIANSSPENDTHEIRMONEY
13072014014005)

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