New Delhi: India’s rural income grew at a much faster clip between 2010 and 2012 than in the previous years, according to the provisional results of the 68th round of the consumption expenditure survey carried out by the National Sample Survey Office (NSSO).
The latest numbers may lead to a significant decline in the poverty level once the Planning Commission calculates the poverty numbers based on the detailed data expected to be released next year. This may further have an impact on the entitlements provided by the government to the poor.
While the average annual growth in monthly per capita consumption expenditure (MPCE) between 2005 and 2010 in real terms stood at 1.4% as per the 66th round of the survey, it grew by around 9% between 2010 and 2012.
For urban India, MPCE growth picked up from 2.8% in the 66th round of the survey to 6.6% in the latest round. The MPCE in real terms is calculated after subtracting the impact of inflation on consumption expenditure.
In value terms, while rural MPCE picked up from Rs927.7 in the 66th round to Rs1,281.45 in the 68th round, urban MPCE increased from Rs1,781.81 to Rs2,401.68 during the same time period.
In the absence of any official income survey, India relies on consumption surveys by its statistics department to gauge household income levels. Based on MPCE data, the Planning Commission calculates the poverty level in the country.
The income gap between rural and urban India is also seen declining. While the 66th round survey carried out in 2009-10 showed MPCE in urban India was double (100.3%) that in rural areas, it came down to 92.3% in the 68th round survey.
NSSO said in a statement it expects to publish detailed results on consumer expenditure from the 68th round of the survey next year.
The provisional results of the latest survey are based on a sample comprising 7,391 villages (59,070 households) and 5,223 urban blocks (41,602 households) in almost all the states and union territories.