Tamil Nadu shows high per capita expenditure compared to the national average, with significant spending in both rural and urban areas as revealed by the Household Consumption Expenditure Survey 2022-23.
Coimbatore: Tamil Nadu is showcasing a notable trend in its spending habits, with higher per capita expenditure in both its rural and urban sectors, as detailed in the recent Household Consumption Expenditure Survey (HCES) 2022-23. While Karnataka and Telangana lead in urban consumption, and Kerala and Punjab in rural, Tamil Nadu stands out by topping both sectors with figures at ₹5,310 in rural and ₹7,630 in urban areas. This rate is well above the national average, contrasting sharply with the usual urban-rural expenditure gap prevalent nationwide.
The survey, indicative of living standards and a potential pointer to poverty levels and social mobility, has led to discussions surrounding the increase in social mobility, potentially driven by enhanced education and employment opportunities. Ramu Manivanan, the director of the Centre of Indigenous Knowledge Systems, highlighted the shrinking disparity in spending between different economic sections over the years, accentuating a significant shift in lifestyle especially among the youth.
Further insights by KR Shanmugam, director of Madras School of Economics, connect these findings to broader shifts in poverty ratios - a notable decline from 29.5% in 2011-12 to just 10% in 2022-23 according to the Rangarajan committee formula. This improvement coincides with a decrease in consumption inequality and a rise in diversification from agriculture to industries as noted by S Mahendra Dev, a professor at ICFAI University.
Despite these positive trends, there remain concerns surrounding data limitations and consumption funded by borrowing among lower income groups. The survey, not fully equipped to analyze wealth inequality, suggests persistent disparities and challenges in attaining a balanced economic growth across the state.
The survey, indicative of living standards and a potential pointer to poverty levels and social mobility, has led to discussions surrounding the increase in social mobility, potentially driven by enhanced education and employment opportunities. Ramu Manivanan, the director of the Centre of Indigenous Knowledge Systems, highlighted the shrinking disparity in spending between different economic sections over the years, accentuating a significant shift in lifestyle especially among the youth.
Further insights by KR Shanmugam, director of Madras School of Economics, connect these findings to broader shifts in poverty ratios - a notable decline from 29.5% in 2011-12 to just 10% in 2022-23 according to the Rangarajan committee formula. This improvement coincides with a decrease in consumption inequality and a rise in diversification from agriculture to industries as noted by S Mahendra Dev, a professor at ICFAI University.
Despite these positive trends, there remain concerns surrounding data limitations and consumption funded by borrowing among lower income groups. The survey, not fully equipped to analyze wealth inequality, suggests persistent disparities and challenges in attaining a balanced economic growth across the state.