The release of the Household Consumption Expenditure Survey (HCES) for 2022-23 marks a significant milestone after a decade-long hiatus.
The factsheet offers valuable insights into present patterns of household consumption, but decisive conclusions should not be made due to changes in methodology, survey design, and item coverage.
Also, it is crucial to understand key takeaways from the factsheet, notable changes, challenges in comparability, and indicators such as rural-urban inequality, inter-caste differences, and shifting consumption patterns.
A New Survey Structure
In contrast to earlier survey rounds, the HCES adopts a segmented approach by conducting three separate surveys on food items, consumables and services, and durable goods.
This departure from the traditional single-questionnaire method aims to enhance the precision of responses by focusing on specific categories.
While this change aligns with the need to combat respondent fatigue, it raises concerns about comparability with previous rounds that followed a more unified structure.
Introduction of Multiple Household Visits
Another notable change in the methodology is the introduction of multiple separate visits to households.
This adjustment acknowledges the well-documented issue of respondent fatigue associated with lengthy questionnaires conducted in a single sitting.
Shorter, focused questionnaires are expected to yield more precise answers. However, this modification poses challenges in terms of comparability, potentially resulting in higher expenditure estimates.
To assess the magnitude and direction of this potential bias, a subset of households could have been subjected to the older single-visit design for comparison.
Imputed Values for Social Welfare Programs
The HCES incorporates imputed values for items received or consumed free of cost through various social welfare programs.
This includes essentials like rice, wheat, footwear, laptops, and motorcycles. However, the validity of these imputed values remains uncertain until unit-level price and quantity data are released.
Understanding the impact of such imputations on the overall consumption expenditure distribution is crucial for a comprehensive analysis.
Changes in Item Coverage
The survey covers 405 items of consumption, compared to 347 in the 2011-12 round.
Such revisions in item coverage are not uncommon and are reflective of evolving consumption habits over time.
However, these changes further contribute to the challenge of ensuring comparability across different survey rounds.
Rural-Urban Inequality
Average all-India urban monthly per capita consumption expenditure (MPCE) at Rs 6,459 in 2022-23, is roughly 72 percent higher than in rural areas (Rs 3,773).
The corresponding figure was 84 percent in 2011-12. This seems to indicate a decline in rural-urban inequality over the decade.
However, there are two caveats. This does not account for the rural-urban price differential, which can fluctuate.
Additionally, a longer view reveals that the rural-urban gap tends to fluctuate. From
75.9 percent in 1999-2000, it rose to 90.8 in 2004-05, and then declined to 83.9 in 2011- 12.
Moreover, there is no indication of whether the ratio increased or decreased in 2017- 18.
Distribution of Consumption Expenditure
In 2011-12, the ratio of the 10th percentile of the rural expenditure distribution (Rs 710) to the 90th percentile (Rs 2,296) was 0.31.
This ratio is 0.33 in 2022-23 (Rs 1,782/Rs 5,356). In other words, the consumption expenditure of the bottom 10 percent of the rural distribution is roughly one-third of the top 10 percent — a ratio that has not changed substantially over the decade.
For urban areas, the corresponding ratio was 0.21 in 2011-12, which has risen to 0.27 in 2022-23, indicating a reduction in urban inequality.
Inter-Caste Differences
The ratio of average rural Scheduled Caste (SC) MPCE to that of the higher-ranked castes was 0.73 in 2011-12.
This has remained unchanged at 0.7 in 2022-23. For rural Scheduled Tribes (ST), this ratio has improved marginally from 0.65 to 0.69 and for Other Backward Classes (OBC), from 0.83 to 0.87.
While rural India does not show a marked narrowing of inter-caste gaps in MPCE, the urban figures suggest a narrowing of inter-group MPCE gaps.
For SCs, the ratio increased from 0.63 to 0.72; for STs, from 0.68 to 0.74 and for OBCs, from 0.7 to 0.84.
Shifting Consumption Patterns Highlighted by HCES Data
The factsheet reveals that in rural India, the percentage share of cereals, a food staple, in average MPCE is now 4.91 percent and 3.64 percent in urban India, compared to
10.75 percent and 6.66 percent respectively in 2011-12.
This is accompanied by an increase in the share of processed foods and beverages.
Overall, HCES indicates a decline in the share of food expenditure over the decade, which stands at 46 percent in rural and 39 percent in urban India.
There have been notable shifts which include an increase in the share of medical expenses on hospitalization, conveyance, and durable goods in rural India, and paan, tobacco, intoxicants, conveyance, and durable goods in urban India.
Way Forward: Need to Follow-Up the Survey
The release of the HCES findings for 2022-23, while limited in scope, represents a welcome development in the pursuit of understanding India's consumption landscape.
The provided factsheet offers valuable insights into present consumption patterns, rural-urban disparities, and inter-caste differences.
However, its limited scope necessitates a prompt release of the full price and quantity unit-level data for the surveyed year, 2022-23.
This complete dataset is crucial for researchers, policymakers, and analysts to delve deeper into the intricacies of the survey and draw more nuanced conclusions.
A continuous and updated flow of data ensures a more accurate understanding of evolving consumption habits, poverty indicators, and other critical socio-economic parameters.
Timely follow-up surveys enable policymakers to adapt strategies based on current trends rather than historical data.
Conclusion
While the changes in HCES survey design aim to improve data collection methodologies, challenges in comparability and potential biases need careful consideration.
The insights into rural-urban inequality, inter-caste differences, and evolving consumption patterns highlight the complexity of India's socio-economic landscape.
For a comprehensive understanding, the swift release of full price and quantity unit- level data is imperative, ensuring that future analyses and policy decisions are well- informed and nuanced.
About Maulana Azad Education Foundation (MAEF)
MAEF was established on the occasion of Maulana Abul Kalam Azad's birth centenary celebrations.
The Foundation is a voluntary, non-political, non-profit making social service organization.
It was registered under the Societies Registration Act, 1860, on 6th July 1989.
The Foundation was established to promote education amongst the educationally backward minorities in particular and other weaker sections in general.
It is fully funded by the Ministry of Minority Affairs, Govt. of India. Structure:
The Hon'ble Minister of Minority Affairs is Ex-Officio President of the Foundation.
The General Body of the Foundation consists of 15 members, of which six are ex-officio, including the President, MAEF, and rest nine are nominated by the President, MAEF.
The management of the Foundation is entrusted with its Governing Body, which consists of six members (including the President, MAEF) selected from amongst the members of the General Body.
Through programmes like the Begum Hazrat Mahal National Scholarship Scheme and the Khwaja Gharib Nawaz Skill Development Training Scheme, the Foundation worked to improve employment opportunities for minorities and awarded scholarships to deserving girls from religious minorities.
Context: Recently, India’s National Security Adviser (NSA), took part in the 6th NSA meeting of the Colombo Security Conclave (CSC) which agreed upon a road map for the year 2024.
About:
Originally known as the Trilateral for Maritime Security Cooperation, this regional security grouping was established in 2011.
Changing dynamics of Colombo Security Conclave (CSC)
Challenges faced by CSC
Way forward:
Maintain a shared strategic perspective that underscores the need to navigate the increasing influence of China in the area without obstruction. Prevent potential areas of disagreement with neighboring nations and promote cooperation within the region.
Context: The Indian Science Congress (ISC) 109th edition, originally to be held in Lucknow University in 2024, has been cast in doubt after the University pulled out citing an ongoing dispute between the Department of Science and Technology (DST) and the ISC Association.
News:
Indian Science Congress (ISC)
India International Science Festival
It has been organized by the Indian government since 2015. This event is a collaborative effort involving the Ministries of Science and Technology, Earth Sciences, the Departments of Space and Atomic Energy, and Vijnana Bharati.
While some criticize post-2014 events, ISC also serves as a platform for student participation, researcher talks, and educational contributions.The Indian Science Congress (ISC) is flawed, featuring disjointed agendas and a hectic schedule. The government supports the India International Science Festival as an alternative. A critical evaluation is needed for ISC to become an independent, frequent, and coherent event reflecting the contributions of the national scientific community, with political and Nobel Laureate presence considered ornamental.
Context: AstroSat, India’s first multi-wavelength space-based observatory, has detected bright sub-second X-ray bursts from a new and unique neutron star with ultrahigh magnetic field (magnetar), which can help understand the intriguing extreme astrophysical conditions of magnetars.
Magnetars
X-ray bursts
They occur in low-mass X-ray binary systems where a neutron star and low-mass main sequence star are in orbit around one another. Due to their close proximity and the extreme gravity of the neutron star, the companion star overflows its roche-lobe and hydrogen is drawn into an accretion disk around the neutron star. This hydrogen is eventually deposited on the surface of the neutron star and immediately is converted into helium due to the extreme temperatures and pressures that exist there.
AstroSat
Launched on September 28, 2015, by the Indian launch vehicle PSLV from the Satish Dhawan Space Centre, Sriharikota, the observatory has a lift-off mass of 1515 kg and operates in a 650 km orbit inclined at an angle of 6 degrees to the equator.
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We provide offline, online and recorded lectures in the same amount.
Every aspirant is unique and the mentoring is customised according to the strengths and weaknesses of the aspirant.
In every Lecture. Director Sir will provide conceptual understanding with around 800 Mindmaps.
We provide you the best and Comprehensive content which comes directly or indirectly in UPSC Exam.