Living standard of the poorest of urban population improved: NSS data

As per the 68th National Sample Survey Data:

  • There is 17 % improvement in expenditure patterns of the poorest segment of India’s urban population in two years till 2011-12.
  • The poorest 10 % of India’s rural population had an average Monthly Per Capita Expenditure (MPCE) of Rs 503.49 per month.
  • As per NSS for 2009-10, the poorest 10 % of the rural population had an average MPCE of Rs 453, while the poorest 10 % of the urban population had an average MPCE of Rs 599.
  • The survey was based on a sample of 59,070 households in 7,391 villages and 41,602 households in 5,223 urban blocks. The final report is likely to be released in year 2013.
  • The urban poorest 10 % lives on Rs 23.40/day while rural poorest survive at Rs 16.78.
  • Rural areas showed lower growth rate in expenditure as the rural poor are known to depend more on non-traded items.
  • But in all income groups, the average monthly consumption expenditure increased by 18 % in rural areas against 13.2 %in urban areas.
  • The average monthly spending by rural families in 2011-12 was at Rs 1,281.45 and by urban households was at Rs 2,401.68.
  • The per capita expenditure level of the urban population was on the average about 87.4 % higher than that of the rural population.
  • Improvement in the monthly per capita consumption expenditure as purchasing power had grown due to higher incomes since Indians traditionally don’t borrow to finance spending.
  • The consumption expenditure in rural areas is increasing and it is spending more on diversified and manufactured items.
  • The gap b/w the richest 10 % of the population and the poorest 10 % was wider in urban areas.
  • The richest 10 % of the rural population had an average MPCE of Rs 3,459.77, about 6.9 times that of the poorest 10%, the ratio increased to 10.9 times in the metro cities.