NEW DELHI: In 2023-24, of Indian households’ average monthly expenditures on non-food items, that on conveyance was the highest, shows an analysis of the latest Household Consumption Expenditure Survey (HCES) data.
Experts attribute the high share of commuting to increased mobility among households, fuel prices, and a poor public transportation system.
At national level, the share of average monthly per capita consumption expenditures (MPCEs) by a household on commuting in rural areas stood at 7.6 per cent, followed by that on purchasing durables (6.48 per cent), fuel and light (6.11 per cent), and clothing and bedding (5.67 per cent).
Similarly, the share of MPCE on commuting in urban areas stood at 8.5 per cent during this period, followed by that on durables (6.8 per cent) and rent (6.6 per cent).
Released by the statistics ministry, the HCES data shows average MPCE in rural areas in 2023-24 was ₹4,122. In comparison, average MPCE by urban households was ₹6,996. Of the total, the share of expenditures on non-food items stood at 52.96 per cent (₹2,183) in rural areas and 60.32 per cent (₹4,219) in urban areas.
Pronab Sen, former chief statistician of India, said travelling to work constituted the biggest share of expenditure on conveyance today and it was observed that more and more people were moving out of their homes to work.
“People are commuting between villages, towns and cities for reasons, especially work. Transportation costs have also gone up significantly during this period due to increased fuel prices. Though this is a natural way of progression in an economy, it is time public transportation was strengthened,” he added.
In rural areas, conveyance has emerged as the top component of expenditure among non-food items in as many as 16 states and three Union Territories. The data showed the share of MPCE on commuting was the highest in rural Kerala (11.38 per cent), followed by Goa (11.14 per cent), Tamil Nadu (10.57 per cent), Punjab (9.5 per cent), and Maharashtra (9.3 per cent).
In urban areas, conveyance has top place in 16 states and four Union Territories. The data showed the share of MPCE on commuting was the highest in Manipur (10.96 per cent), followed by Tamil Nadu (9.91 per cent), Goa (9.91 per cent), Rajasthan (9.59 per cent), and Gujarat (9.43 per cent).
P C Mohanan, former acting chairman, National Statistical Commission, said mobility among Indian households had increased manifold in recent years. It is no surprise that households in states like Kerala and Goa are spending more on travelling because they have well-developed labour markets.
Source: Business Standard
Imported Inflation, Rising Import Bill A Concern, But Not In Near-Term 