DIGITAL CONSUMPTION IN INDIA DURING 2022-23 AND 2023-24

Paper Number :WP54/2025
Publication Date :Sept. 17, 2025

This Article discusses recent trends and patterns of India’s digital consumption using the newly released Household Consumption Expenditure Surveys (HCES) 2022–23 and 2023–24. We document how participation in digital consumption, defined as either online purchases or online payments, has expanded across rural–urban sectors, income deciles, education levels, and social groups. Results show rapid rural catch-up, though absolute participation remains lower than urban levels. Growth is driven primarily by non-food and service categories such as travel, utilities, and clothing, while food-related digital transactions remain stagnant. Strong gradients emerge: higher consumption households and more educated households are substantially more likely to consume digitally, consistent with Engel law dynamics and human capital effects. At the same time, social group based disparities persist, with ST and SC households lagging despite overall gains. These findings highlight that India’s digital economy reflects a transformation of household level consumption but remains stratified. Policies must expand affordability, last-mile connectivity, and digital literacy to ensure inclusive welfare gains due to improved efficiency.