‘Southern states dominate’: Kerala, Telangana and Tamil Nadu lead spending rise in India

South India outperforms the rest of the country in monthly per capita consumption expenditure (MPCE), according to the Household Consumption Expenditure Survey 2023-24 released on Friday. Five southern states – Kerala, Tamil Nadu, Telangana, Andhra Pradesh and Karnataka – reported MPCE levels well above the national average.

In Kerala, rural households spend Rs 6,611 per month, while urban households spend Rs 7,834 – compared to national averages of Rs 4,122 and Rs 6,996 respectively. It is followed by Tamil Nadu with Rs 5,872 in rural areas and Rs 8,325 in urban areas. The Telangana figures are Rs 5,675 and Rs 9,131 respectively.

Andhra Pradesh recorded the highest MPCE in the south, with rural households spending Rs 6,107 and urban households Rs 9,877. Karnataka, with Rs 5,068 in rural areas and Rs 8,169 in urban areas, rounds out the top five.

Interestingly, industrialized states like Gujarat and Maharashtra hover around the national average, while populous northern states like Uttar Pradesh, Bihar, Madhya Pradesh and Rajasthan lag behind. West Bengal also falls below the average in both rural and urban spending.

The poll identified stark contrasts nationally. The highest MPCE was recorded in Sikkim – rural households spend Rs 9,377, urban households spend Rs 13,927. At the other end, Chhattisgarh reported the lowest MPCE at Rs 2,739 in rural areas and Rs 4,927 in urban areas.

The survey also revealed significant differences between rural and urban areas. Meghalaya tops the rural-urban gap at 104%, followed by Jharkhand at 83% and Chhattisgarh at 80%. Across all 28 states, nine states reported MPCE levels above the national average in both the rural and urban categories.

The Household Consumption Expenditure Survey, conducted from August 2023 to July 2024, provides important insights into spending trends, helping to measure poverty, inequality and economic well-being.