Consumption levels and inequality in India

India does not have official statistics on income. The closest proxy for these is the Consumption Expenditure Survey (CES) which used to be conducted every five years by the National Sample Survey

Office (NSSO). The latest results for CES go back to 2011-12. While a CES was conducted in 2017-18, its findings were junked by the government. Private Final Consumption Expenditure (PFCE), which accounts for more than half of India’s GDP, is the single largest determinant of growth. Headline PFCE growth fell sharply from 7.6% in 2018-19 to 5.6% in 2019-20 and further to a 9.4% contraction in 2020-21. However, we still do not know the nature of this slowdown and contraction. Is it the poor who have been consuming less or has there been a deceleration across classes? This information is crucial in making any policies to boost consumer spending. India conducts a large Periodic Labour Force Survey every year for employment statistics. There is no reason why the same cannot be done for consumption expenditure.

AVERAGE MONTHLY CONSUMPTION EXPENDITURE (2011-12)