Year: 2025 | Month: September | Volume 12 | Issue 3
Determinants of Expenditure Behaviour of Households and Policy Imperatives in IndiaVikas
IndiaVikas Kumar
K.N. Singh
Sudhir K Rawat
Sudhakar Dwivedi
Arnab Roy and Mohamad Awais
DOI:10.30954/2394-8159.03.2025.2
Abstract:
2025AbstrActThis study examines the structure and pattern of Monthly Per Capita Consumption Expenditure (MPCE) in India using data from the Household Consumption Expenditure Survey (HCES) 2023–24. The analysis highlights rural–urban disparities, consumption composition, and state-wise variations in expenditure. The findings reveal that urban households exhibit significantly higher MPCE compared to rural households, with a notable shift toward non-food expenditure. Engel’s Law is validated, showing a declining share of food expenditure with rising income. Statistical analysis, including correlation and regression, indicates strong linkage between rural and urban consumption patterns. The study also identifies regional disparities and inequality in consumption, particularly in access to non-food services such as education, healthcare, and housing. The results provide important insights for policy interventions aimed at reducing inequality and promoting inclusive growth.
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