India is reeling under slowdown and consequently unemployment, despite that the spending power of Indian is on the rise. In-fact in terms of per cent rural Indian has outperformed their urban peers. In the last two years country’s per capita expenditure rose at a good pace.
The spending increased in rural area by19% annually and urban area saw 17% increase.
The data by ministry of statistics and programme implementation show monthly per capita expenditure showed urban households spend 42.6% on food, 6.9% on education, 6.7% on fuel and light, 6.2% on rent and 6.4% on clothing. In case of rural households, the spending on food is 52.9% while it is 8% for fuel, 7% on clothing and 6.7% on medical costs.
MPCE measured in terms of uniform reference period, for urban areas rising to Rs 2,399.24 in 2011-12 from Rs 1,785.81 in 2009-10. Rural MPCE rose faster to Rs 1,278.94 from Rs 9, 27.70 during the same period.
Modified mixed reference period was the method used to measure the increase of percentage in consumption. In urban area the expenditure rose to Rs 2,629.65 in 2011-12 from Rs 1,984.46 in 2009-10 while it rose to Rs 1,429.96 from R1, 053.04 in rural areas.
The rise in the expenditure power indicates a fall in poverty levels.
Source – Financial Express