CONSUMPTION EXPENDITURE INEQUALITY IN INDIA DURING 2012–2024

Paper Number :WP64/2026
Publication Date :July 6, 2026

We examine the distributional changes in consumption expenditure in India between 2011–12 and 2023–24 using unit level data from the NSS-HCES surveys. The absence of comparable official consumption surveys after 2011–12 created a major empirical gap in understanding the distributional change. We analyse the distribution of real MPCE and its inequality across rural–urban sectors, expenditure components, socio-economic groups and states. The real MPCE increased substantially across rural and urban sectors, with faster annualised growth among lower percentiles. All standard inequality measures show decline in inequality. The non-food expenditure remains the dominant contributor to the levels of consumption inequality, but its inequality enhancing role weakened over time, suggesting broader gains in non-food consumption.