An economic analysis of urban and rural India

The consumption patterns of rural and urban households serve as a valuable indicator of the economic status and standard of living in a country. These patterns also help assess the relative importance of various food and non-food items within the consumption basket. This research examines the expenditure habits of rural and urban Indian households, highlighting their spending across diverse categories of food and non-food items. Key findings indicate that the Monthly Per Capita Consumption Expenditure (MPCE) of Rural India on Food Items at 53.7 per cent is more than the MPCE of urban India on food items at 42.9 Per cent. When one looks towards the last five years' trend it was revealed from the study that Rural MPCE of food items has decreased from 59 to 46.38 Per cent and Urban MPCE of food has also decreased from 48.06 per cent to 39.17 Per cent.