Living standard of the poorest of urban population improved: NSS data

August 11, 2012

As per the 68^th National Sample Survey Data:

There is 17 % improvement in expenditure patterns of the poorest segment of India’s urban population in two years till 2011-12.
The poorest 10 % of India’s rural population had an average Monthly Per Capita Expenditure (MPCE) of Rs 503.49 per month.
As per NSS for 2009-10, the poorest 10 % of the rural population had an average MPCE of Rs 453, while the poorest 10 % of the urban population had an average MPCE of Rs 599.
The survey was based on a sample of 59,070 households in 7,391 villages and 41,602 households in 5,223 urban blocks. The final report is likely to be released in year 2013.
The urban poorest 10 % lives on Rs 23.40/day while rural poorest survive at Rs 16.78.
Rural areas showed lower growth rate in expenditure as the rural poor are known to depend more on non-traded items.
But in all income groups, the average monthly consumption expenditure increased by 18 % in rural areas against 13.2 %in urban areas.
The average monthly spending by rural families in 2011-12 was at Rs 1,281.45 and by urban households was at Rs 2,401.68.
The per capita expenditure level of the urban population was on the average about 87.4 % higher than that of the rural population.
Improvement in the monthly per capita consumption expenditure as purchasing power had grown due to higher incomes since Indians traditionally don’t borrow to finance spending.
The consumption expenditure in rural areas is increasing and it is spending more on diversified and manufactured items.
The gap b/w the richest 10 % of the population and the poorest 10 % was wider in urban areas.
The richest 10 % of the rural population had an average MPCE of Rs 3,459.77, about 6.9 times that of the poorest 10%, the ratio increased to 10.9 times in the metro cities.