Urban-rural gap reduced in 21 of 36 states and union territories in 2023-24

urban-rural consumption inequality dips in most states/Uts

Consumption spending rose faster in rural parts of Odisha and urban areas of Punjab among the larger states in 2023-24 as compared to the previous year, according to data released by Household Consumption Expenditure Survey on December 27.

While the monthly per capita budget rose 9.2 percent across the country, 22 states and UTs witnessed a faster pace of consumption spending than the national average.

On the other hand, larger states like Uttar Pradesh, Bihar, Gujarat, Tamil Nadu witnessed a slower pace of spending than the national average.

Maharashtra witnessed the slowest rise in consumption among the larger states with just a 3.4 percent rise in household budget in urban areas. On the other hand, urban consumption rose the slowest in Delhi and Karnataka at 3.9 percent and 5.3 percent, respectively.

Delhi has witnessed lower urban inflation than the rest of the country over the previous year.

The inequality gap between urban and rural consumption declined for the country from the previous year, with 20 of 36 states recording a decline, but 16 states, including some of the big ones like Maharashtra, Punjab, Rajasthan and Jharkhand, witnessed a rise in inequality.

In the case of Maharashtra, for instance, urban consumption was 1.78 times more than urban areas compared with 1.66 in the previous decade.

On the other end, Karnataka had witnessed the steepest decline in inequality, as urban consumption at 1.65 times higher than rural areas in 2023-24 was lower than 1.74 times difference in 2022-23.