• The Household Consumption and Expenditure Survey (HCES) 2022-23 employed the CSQ (Consumption Survey Questionnaire) and DGQ (Durable Goods Questionnaire) to assess non-food item expenditure.

• The HCES included a comprehensive range of non-food items to capture an accurate picture of household spending.

• The broad categories evaluated included pan, tobacco and intoxicants, fuel and light, education, medical, conveyance, consumer services excluding conveyance, miscellaneous goods, entertainment, rent, taxes and cesses, clothing, bedding, footwear and durable goods.

• The expenditure pattern on non-food items in India is as follows ;

1. Rural: 54% of MPCE of which Conveyance (7.55%), Medical (7.13%), Durable goods (6.89%), Fuel and light (6.66%), Clothing and miscellaneous (6% each).

2. Urban: 61% of MPCE of which Conveyance (8.59%), Durable goods (7.17%), Miscellaneous goods, entertainment, and rent (6.56% each).

• Key takeaways

1. The share of non-food items has increased for both urban and rural households in comparison with previous surveys.

2. Non-food expenditure constituted a major part of total MPCE in urban areas.

3. Urban and rural households spend significantly more on conveyance.

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