NATIONAL SAMPLE SURVEY: 56^th ROUND, 2000-01

HOUSEHOLD CONSUMER EXPENDITURE AND EMPLOYMENT SITUATION IN INDIA: KEY RESULTS

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BACKGROUNDER

Consumer expenditure

• About 75% of the Indian population lives in rural areas and 25%, in urban areas. There were 942 females per 1000 males in rural areas and 908 females per 1000 males in urban areas.

• The all-India average monthly per capita consumer expenditure (MPCE) is Rs 495 and Rs 914 for rural and urban areas, respectively. Thus, the average MPCE for urban areas at all-India level is 85% higher than that in rural areas.

• Average MPCE in rural areas has increased by 2% (Rs 9) from the previous year and in urban areas, by 7% (Rs 60).

• For rural India, average MPCE of Rs 495 comprised Rs 279 for food, and Rs 216 for non-food. Food expenditure included Rs 100 for cereals and cereal substitutes, and Rs 90 for milk, milk products, vegetables and edible oil. Non-food expenditure included Rs 41 for fuel and light, and Rs 41 for clothing and footwear.

• For the urban sector, average MPCE of Rs 914 comprised Rs 400 for food and Rs 514 for non-food. Of food expenditure, only Rs 102 went towards cereals and cereal substitutes while Rs 143 is spent on milk, milk products, vegetables and edible oil, and Rs 58 on beverages, refreshments and processed food. Rs 77 is spent per person per month on fuel and light, and Rs 69 on clothing and footwear.

• At the all-India level, the share of cereals and cereal substitutes in total consumption expenditure is 20% in rural India and 11% in urban India.

• There is a declining trend in the share of food in total expenditure. It is 56% in rural areas and 44% in urban areas during NSS 56^th round compared to 64% in rural areas and 56% in urban areas during NSS 43^rd round (1987-88).

Adequacy of food

• At the all-India level the proportion of chronically hungry households (not getting enough to eat during even some months of the year) is less than 1% for rural areas and less than 0.5% for urban. As for seasonal hunger, 19 per 1000 households in rural areas and 4 per 1000 households in urban areas reported getting enough food only in some months of the year.

Other living conditions

• The percentage of households living in dwelling units owned by them was 93 in rural India and only about 61 per cent in urban areas, while 34 per cent lived in rented dwelling units in urban areas.

• There is an increase of around 3 percent in the proportion of urban households using LPG for cooking over the previous year. The percentage of urban households depending on firewood and chips for cooking came down by 1 whereas the same for rural areas remained more or less stable.

• About 99% of the households are dependant on kerosene and electricity for their lighting purposes in both rural and urban India. At the all-India level the percentage of households using electricity is 91% in urban areas and 51% in rural areas; the remaining households are, mostly, users of kerosene

Employment and unemployment

• Over two-fifths of the population (42%) in rural areas – and more than one-third (35%) in urban areas – are in the employed category as per their usual status (ps + ss, that is, if principal and subsidiary status workers are taken together).

• The worker population ratio (WPR) according to the usual status (ps+ss) differed between males and females in both rural and urban areas. In rural areas, the rates are 54 and 29 per cent for males and females, respectively. In urban areas, the corresponding rates are 53 and 14 per cent, respectively.

• Both for males and females, the unemployment rates are appreciably higher in urban areas than in the rural areas.

• In rural India, according to the usual status (ps+ss), about 69 per cent of the male workers and 82 per cent of the female workers are engaged in agricultural activities. In urban India, about 58 per cent of the male workers and about 48 per cent of the female workers are engaged in the tertiary sector activities as per the usual status (ps+ss).

• The proportion of usually employed (ps+ss) who reported themselves as not employed (i.e. unemployed or out of labour force) as per current weekly status is higher for females than for males. For females, it is 25 per cent in the rural areas and 18 per cent in the urban areas.