Intact consumption story will create more avenues for employment, an industry body PHDCCI said.
Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry, appreciates the efforts of the Government for providing a strong push to India’s consumption story in the post-pandemic years.
According to the Household Consumption Expenditure Survey, the per capita consumption spending has increased by 33-40 per cent in 2022-23 from 2011-12.
The average estimated monthly per capita expenditure in 2022-23 was Rs. 3,773 in rural and Rs. 6,459 in urban India, which has increased from Rs. 1,430 in rural and Rs. 2, 630 in urban India during 2011-12.
This indicates an intact demand scenario which will create more employment avenues, boosting growth further, said Sanjeev Agrawal.
The spillovers created by the high consumption expenditure will stimulate private capex and motivate manufacturing, creating a virtuous cycle of higher and higher growth, said Agrawal.
It is highly appreciable that, even at a disaggregated level, States display high consumption demand. Among the states, MPCE is the highest in Sikkim for both rural and urban areas (Rural – Rs. 7,731 and Urban – Rs. 12,105), followed by Goa (Rural – Rs. 7,367 and Urban – Rs. 8,734) , said Sanjeev Agrawal.
Among the different categories of items of expenditure, the share of food and non-food items in total MPCE was 46 per cent and 54 per cent in rural areas and 39 per cent and 61 per cent in urban areas, respectively in 2022-23, which indicates that average monthly household expenditure is titled towards non-food items, which will provide a great boost to the industrial sector, said Agrawal.
The percentage share in total MPCE of durable goods in India’s rural and urban areas has increased substantially from 2011-12 to 2022-23.
The percentage share in total MPCE of durable goods rural areas from 2011-12 to 2022-23 has increased from 4.85 per cent to 6.89 per cent. The same for urban areas has increased from 5.60 per cent to 7.17 per cent, which is highly motivating for the manufacturing sector, Agrawal, said.
The rural demand is displaying strong signs of recovering and growth as the difference in percentage of rural MPCE from 2011-12 to 2022-23 has declined from 83.9 per cent to 71.2 per cent, which is highly appreciable, said Agrawal.
