Title: How much money do the richest Indians spend? Sub-title: Average monthly per capita spending within the top 20% (2023) Explanation: In both rural and urban India, spending rises sharply as you move from the top 20% to the top 5% and then the top 1%. The urban top 1% spends about ₹33,604 per person per month, nearly double the rural top 1% at ₹17,253. In rural India, the top 20% spends ₹6,963 and the top 5% spends ₹10,501. In urban India, the top 20% spends ₹13,097 and the top 5% spends ₹20,823. Source: Household Consumption Expenditure Survey (2022–23), NSO Attribution: Data For India | CC BY

🧵 One of the most effective ways to understand how Indians live is by looking at how much they spend in a month. This is particularly significant in India where the economy is largely informal and significantly agricultural, making income measurement a challenge.

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Chart Title: How does the average Indian household use their food budget? Description: A stacked bar chart shows the share of household spending on food by category in multiple years from 1988 to 2023. Categories are cereals and pulses, fruits nuts and vegetables, dairy products, eggs fish and meat, salt sugar oil and spices, and packaged food. Each year’s bar sums to 100 percent, revealing long-run shifts in the food basket. Key Points: - Spending on cereals and pulses declines steeply from 43% in 1988 to 14% in 2023. - Packaged food rises the most, from 8% in 1988 to 23% in 2023. - Fruits, nuts and vegetables increase from 12% to 20% over the period. - Dairy grows from 14% to 18%; eggs, fish and meat from 5% to 10%. Source: NSS Rounds 38 to 79, HCES, NSO Attribution: DataForIndia.com/consumption-expenditure/ | CC BY

🧵 One of the most effective ways to understand how Indians live is by looking at how much money they spend in a month, and on which commodities.

#ConsumptionExpenditure #HouseholdSpending #LivingStandards #India #DataForIndia

An infographic by Data For India explains how economists estimate income levels in India, given that only 7.5% of adult Indians file income tax returns (Source: Income Tax Department, 2022–23). A large ₹ symbol and text pose the question: "So how do we find out the income levels for the rest of the country?"

Text explains that economists use consumption expenditure as a proxy for income. The Household Consumption Expenditure Survey (HCES) records over 500 types of food and non-food expenses. Examples of food: cereals, pulses, fruits, vegetables, dairy, meat, beverages. Examples of non-food: rent, utilities, health, education, fuel, property tax, government fees.

Describes how the survey collects recall data over different reference periods: - 7 days for perishable goods like vegetables and milk - 30 days for cereals, conveyance, rent, entertainment - 365 days for durable goods, education, health

All expenses are normalised to a 30-day period to estimate monthly spending. Two bar graphs show average monthly expenditure: - Per Capita Consumption Expenditure: ₹6,459 (urban), ₹3,773 (rural) - Household Consumption Expenditure: ₹24,828 (urban), ₹16,839 (rural) Note: Expenditures exclude income tax, insurance, land/real estate purchase, charity, and gifts. Source: NSS Round 79, HCES (2022–23), NSO

🧵The simplest ways to understand household incomes in India would be to either use income tax assessment data, or by surveying households on their incomes.

However, just 7.5% of adult Indians file income tax returns.

#ConsumptionExpenditure #HouseholdSpending #LivingStandards #India #DataForIndia

An average Indian’s Monthly Per Capita Consumption Expenditure (MPCE) on everything except investments is a little under ₹5,000 or USD 60, according to the 2023 Household Consumption Expenditure Survey.

#ConsumptionExpenditure #HouseholdSpending #LivingStandards