Social inequality lower in 2023-24 as SC, ST consumption rose faster: Govt data

Consumption inequality reduced across social groups

India’s social inequality reduced in 2023-24 as the consumption spending of Scheduled Castes (SCs) and Scheduled Tribes (STs) rose faster than other categories, according to a Moneycontrol analysis of data released by the government on January 30.

While the monthly per capita consumption of SCs rose faster, at 11.6 percent in 2023-24 compared to the previous year, STs in rural areas witnessed an 11.5 percent rise in the same, according to the results of the Household Consumption Expenditure Survey 2023-24 released on January 30.

On the other hand, Other Backward Classes (OBCs) witnessed a 9.3 percent rise in consumption, whereas Others, which includes the general category, saw a 5.7 percent increase.

The income of the general category, however, remained higher than other groups, as they spent Rs 4,642 per month on consumption compared with Rs 4,206 spent by OBCs, Rs 3,878 spent by SCs, and Rs 3,363 spent by STs in rural areas.

In urban centres, the growth in consumption spending was faster for STs and OBCs, at 11.4 and 9.1 percent, respectively, compared to the 6.8 percent rise witnessed by the general category.

The STs did better in urban areas as the income of the Others category was only 1.3 times more than theirs, while in rural areas the income of the general population was 1.38 times more than that of the STs.

For the SCs, however, urban inequality in income was much higher, 1.36X, compared with 1.2X for rural areas.

Consumption inequality declined further in 2023-24 as household spending of the poorest rose faster while that of the richest section contracted from the previous year, per results of the Household Consumption Expenditure Survey.

“Consumption inequality, both in rural and urban areas, has declined from the levels of 2022-23. The Gini coefficient has declined to 0.237 in 2023-24 from 0.266 in 2022-23 for rural areas, and to 0.284 in 2023-24 from 0.314 in 2022-23 for urban areas,” states the factsheet released by the government on December 27.