Tamil Nadu’s Household Consumption Sees Significant Growth in 2023-24

Tamil Nadu has seen an increase in household consumption in FY24 with rural and urban sectors growing. Kerala’s average monthly per capita consumption expenditure (MPCE) has increased, according to the latest Household Consumption Expenditure Survey published by the Ministry of Statistics and Programme Implementation (MOSPI), indicating a rise in living standards and purchasing power.

Rural level the MPCE rose from ₹5,310 in 2022-23 to ₹5,701 in 2023-24, and Tamil Nadu retained the third-highest state in rural consumption, after Kerala and Punjab. The urban sector too showed remarkable progress, with the MPCE climbing from ₹7,630 to ₹8,165, making Tamil Nadu third for urban consumption after Telangana and Haryana. This also shows that this upward trend (is) a balanced growth of both sectors.

A positive sign is that the state’s Gini coefficient, which measures consumption inequality, fell. The Gini coefficient was reduced from 0.245 to 0.210, pointing to a closer distance between varying income groups. Moreover, it also indicates a more equal distribution of income and expenditure, thus strengthening the overall economic stability.

Experts say rural income, urbanization and government welfare schemes to enhance disposable income and consumption were among the factors fuelling this growth. For a starved state like Tamil Nadu which has lost far too much blood to others in the battle of household consumption, the coming into effect of `4,200′ was nothing short of a hard-won victory.