Rural consumption growth outpaced urban in last decade

Rural India’s spending power has risen faster than the urban segment over the last more than a decade, reports Saikat Neogi.

Monthly per capita expenditure (MPCE) in the rural sector has jumped three times to Rs 4,122 in 2024 from Rs 1,429 in 2012, signaling a move beyond basic needs and towards more aspirational consumption, data from National Statistics Office show. The gap between rural and urban per capita expenditure has narrowed.

In 2012, urban households spent 84% more than their rural counterparts, while the differential shrunk to 70% last year. Moreover, the share of food in rural per capita expenditure dropped from to 47% in 2024 from 60% in 2012. For urban households, it fell to 40% from 48% during the same period.