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Deprived rural population, state-wise: Chhattisgarh, Meghalaya, Odisha, Nagaland and West Bengal; Graphic

courtesy: The Times of India (http://epaperbeta.timesofindia.com/Gallery.aspx?

id=04_07_2015_028_021_001&type=P&artUrl=THE-TIMES-OF-INDIA-04072015028021&eid=31808)

Deprived rural population, state-wise: Bihar, MP, Mizoram, Jharkhand and Manipur; Graphic

courtesy: The Times of India (http://epaperbeta.timesofindia.com/Galler y.aspx?

id=04_07_2015_028_021_001&type=P&artUrl=THE-TIMES-OF-INDIA-

04072015028021&eid=31808)

Household expenditures: India

From Indpaedia

This is a collection of articlesarchived f or the excellence of their content.

Contents

1 2012: Poor in villageslive on Rs 17 a day, intowns on Rs 23 a day

1.1 Top and bottom5%1.2 Food1.3 Non-food items

2 2011-12,13: Maximumincome in ruralhouseholds3 2012-15: Rise in urbanconsumption4 Asset ownership: Ruralhouseholds

4.1 Ownership of moveable assetsamong differentsocial groups

5 Income disparity: India

5.1 Incomedisparity between

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rich & poor growing rapidly

5.1.1Consumptionexpenditure

between 2000and 2012:

India5.1.2Expenditure

per person onfood

5.2 Income andconsumption5.3 Community-wise disparities

6 Rural and urban

spending6.1 Gujarat slidesdown6.2 Amartya Sen

backs Bihar’sgrowth model6.3 Andhra, TNclimb on progressgraph

6.4 Andhra, The best-performingstate6.5 Growth rates of householdexpenditures

7 Households in cities7.1 Urban India: Nosource of incomefor 35 lakhs

households8 How Indians spend their

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India: Average monthly household consumption expenditure per person, 2004-12. Source: The Times of India

(http://epaperbeta.timesofindia.com//Gallery.aspx?id=11_07_2014_012_005_003&type=P&artUrl=STATE-OF-THE-STATES-

11072014012005&eid=31808)

money8.1HEALTHCARE8.2 EDUCATION8.3 FOOD

9 See also

2012: Poor in villages live on Rs 17 a day, in towns on Rs 23 a day

Mahendra Singh,

TNN | Jun 21,

2013

The Times of India

(http://timesofindia.indiatimes.com/india/Poor-in-villages-live-on-Rs-17-a-day-in-towns-on-Rs-23-a-day-Survey/articleshow/20690610.cms)

Poor in villages live on Rs 17 a day, in towns on Rs 23 a day: Survey

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Consumption patterns: The Times of India (http://epaperbeta.timesofindia.com//Gallery.aspx?id=03_09_2014_007_043_003&type=P&artUrl=CHEW-ON-THIS-03092014007043&eid=31808)

The average monthly spending on all-India basis was around Rs 1,430 for rural India and around Rs 2,630 for urban India, a government

survey has revealed. NEW DELHI: The poor in rural areas spend only Rs 17 per day while those living in cities and towns spend Rs 23 a day,

a government survey has revealed.

Top and

bottom 5%

The bottom 5% of

the population had

an average

monthly per capita

expenditure of Rs

521.44 in rural

areas and Rs

700.50 in urban

areas, according to

National Sample

Survey (NSS) data

for 2011-12 (July-

June).

The top 5% of the

population had an

average monthly

spending of Rs

4,481 per monthin rural areas and

Rs 10,282 in

urban areas.

While there is no upper limit for spending for the top 5% segment, the maximum spending by those falling at the bottom of the ladder is Rs

616 a month (Rs 20.5 a day) in rural areas and Rs 827 (Rs 27.5) in urban areas.

The average monthly spending on all-India basis was around Rs 1,430 for rural India and around Rs 2,630 for urban India. This means those

living in cities are spending about 84% higher than their rural counterparts.

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Food

In cities and towns, food accounted for 42.6% of the value of household consumption which included 9% on beverages, refreshments and

processed food, 7% on milk and milk products, and 6.7% on cereals and cereal substitutes. Education accounted for 6.9%, fuel and light 6.7%,

conveyance 6.5%, and clothing and footwear 6.4%.

In rural India, food accounted for 52.9% of the value of consumption that included 10.8% on cereals and cereal substitutes, 8% on milk and

milk products, 7.9% on beverages, refreshments and processed food, and 6.6% on vegetables.

Non-food items

Among non-food items, fuel and light for household purposes (excluding transportation) accounted for 8%, clothing and footwear for 7%,

medical expenses for 6.7%, education for 3.5%, conveyance for 4.2%, other consumer services (excluding conveyance) for 4% and consumer

durables for 4.5%.

Even in rural areas, spending on cereals has seen a declining trend as it came down from 18% in 2004-05 to 12% in 2011-12. In urban India, it

came down from 10.1% in 2004-05 to 7.3% in 2011-12.

Apart from beverages, none of the food items such as grams, pulses, milk, fish, vegetables showed any noticeable increase in share in both

rural and urban India. The spending on pan, tobacco and intoxicants fell noticeably over the years since 1993-94 though the decline appears to

be flattening out.

The spending on "miscellaneous goods and services" category (including education, medical care and entertainment) has grown significantly

— from 23.4% in 2004-05 to 26% in 2011-12 in rural areas and from 37.2% in 2004-05 to nearly 40% in urban areas.

As far as states are concerned, consumption expenditure in villages of Odisha and Jharkhand were the lowest, followed by Bihar, Madhya

Pradesh and UP. In urban areas, Bihar had the lowest expenditure followed by Chhattisgarh, Odisha, Jharkhand and UP.

2011-12,13: Maximum income in rural households

The Times of India (http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=92-village-homes-run-on-less-than-Rs-

04072015028031) , Jul 04 2015

Subodh Varma

92% village homes run on less than Rs 10,000 a month

http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=92-village-homes-run-on-less-than-Rs-04072015028031





Rural households: Monthly

income and employment

profile;Graphic courtesy: The

Times of India

(http://epaperbeta.timesofindia.c

eid=31808&articlexml=92-village-homes-run-on-less-

Giving a more storied picture of rural India, the Socio-Economic and Caste Census (SECC) released says that a staggering 92% of rural

households reported their maximum income below Rs 10,000 per month. Nearly three quarters of all rural households said that the income of

the highest earning member was Rs 5,000 or less. The SECC was conducted during 2011-12 with some states completing it in 2013, due to a

lengthy process of seeking objections on collected data. It found that about 18 crore households lived in rural

areas, including outgrowths of towns.

The SECC found that over 9 crore households were living by doing casual manual labour. That's more than

half of all rural households. Cultivators were reported as numbering 5.39 crore households, making up about30%. The muchheralded non-agricultural enterprises were providing livelihood to just 29 lakh households, a

meagre 1.6% of the total.

There seems to be a significant difference with Census 2011 figures. The Census counts people, and

according to it, in 2011 there were 9.2 crore cultivators and 8.1 crore agricultural labourers. This would

translate to about 2 crore cultivator households and 1.7 crore agricultural labourer households.

However, Abhijit Sen, former member of the Planning Commission who was involved in designing the

survey, told TOI that this comparison should not be done because the SECC asked about incomes while theCensus asked about work.

“Also, everybody in a household doesn't work. So converting Census-based worker figures to households will

not give a true picture,“ he added.

But on one issue, the SECC is perhaps better reflecting the lives of rural people. The Census gives figures for

`agricultural labourers' whereas the SECC gives figures for those working as casual manual labourers, which

is not confined to agricultural labour alone. Due to pressure on land,fragmentation, and low returns, a vast

army of people, both men and women, are turning to any kind of casual labour to earn a living.

“Each rural household will have different kinds of casual workers. The SECC is reflecting this reality,“ Sen

said.

SECC reports that only about 10% of rural households have salaried jobs. Of these, about two thirds are in

public sector, and a third, 6.4 lakh in all, work regular private sector jobs. And, less than 5% of the rural

households pay income tax or professional tax. This is mainly because agricultural income is not taxed and

with over 92% households earning less than Rs.10,000, most don't qualify .

2012-15: Rise in urban consumption


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than-Rs-04072015028031) ,

Jul 04 2015

Indian cities on growth path, top 50 and top 200, 2012-15;

Graphic courtesy: The Times of India

(http://epaperbeta.timesofindia.com/Article.aspx?

eid=31808&articlexml=Urban-consumption-shows-signs-of-

revival-20082015021032) , Aug 20 2015

The Times of India (http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Urban-

consumption-shows-signs-of-revival-20082015021032) , Aug 20 2015

Urban consumption shows signs of revival

Rupali Mukherjee

Urban consumption growth appears to be showing signs of improvement, with thefastest-growing segments for the top 200 cities being multiplexes, retail apparel

and quickservice restaurants. Not only consumption patterns, job opportunities and

financial infrastructure have also shown a revival over a four-year period since

March 2011. Given India's favourable demographics and rising income, the stage

is set for urbanization growth to continue for years to come, though the density of

the drivers is still not enough to meet the requirements and in come of the

population, analysts say. Since 2011, growth in the financial infrastructure index

has outpaced that of the other indices (consumption and job opportunities).

Financial infrastructure has been the fastest-growing segment among the three

indices, with ATMs being the key driver for the strong growth, says an analysis

done by Morgan Stanley of over 250 cities across the country .

The ATM to bank ratio rose to 1.3x from 0.8x since March 2011 for the top 50 cities, while for the top 200 cities, it increased to 1.2x from

0.7x. The annual growth in ATMs is about 25% for the top 50 and 200 cities. In fact, the top 200 cities showed the fastest growth in the

consumption index since March 2011, while overall it showed a stable and steady growth through the period.Multiplexes, followed by luxury

cars and restaurants (new age food chains) have been the fastest-growing components with in the consumption index, while retail

hypermarkets have been the biggest laggard in terms of growth. The shares of luxury car dealerships and multiplexes have grown the most in

the consumption basket during the period, at the cost of lost shares for retail hypermarkets and non-luxury car dealerships. The AlphaWiseCity Vibrancy Index (ACVI) studied the drivers of urbanization and the rate of change, with key ingredients including infrastructure, job

opportunities, modern consumer services, and a city's ability to mobilize savings. On a 12month basis, however, the ACVI for the top 50 cities

grew 13% YoY as against 15% YoY in F2014. The consumption index showed a slight acceleration in growth to 13% year-on-year, while job

opportunities and financial Infrastructure decelerated to 8% and 17% in F2015 as against a growth of 12% and 20.5% respectively in F2014.

Asset ownership: Rural households

The Times of India (http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Owning-cars-still-a-dream-for-many-04072015014025) , Jul 04 2015


http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Owning-cars-still-a-dream-for-many-04072015014025

http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Urban-consumption-shows-signs-of-revival-20082015021032

http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Urban-consumption-shows-signs-of-revival-20082015021032

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Rural households: Assets ownership; Graphic courtesy: The

Times of India


eid=31808&articlexml=Owning-cars-still-a-dream-for-

many-04072015014025) , Jul 04 2015

Atul Thakur

Owning cars still a dream for many

Data from the SECC on asset ownership of rural households shows the stark reality

of India's countryside. Motorised vehicles, telephones, refrigerators and agricultural

equipment are a dream for most of our rural population. Two of every 10 rural

households own motorised vehicles, mostly two-wheelers. Compared to 31.2million households owning two wheelers, 4.4 million families own four wheelers.

This translates to 17.4% and 2.5% of rural households. Only 11% of rural homes

have refrigerators.This may linked to poor public transport and electricity supply as

well as lifestyle differ ences between rural and urban India. Although most of the

rural population depends on agriculture for livelihood, less than one-tenth owns

irrigation equipment. Ownership of mechanised agricultural equipment is lower:

4.1%. Gov ernment's financial inclusion initiatives like Kisan Credit Card, aimed at

providing affordable credit to farmers, have a low penetration rate.Only 3.6% have

these cards with limits above Rs 50,000.

One positive that stands out is the penetration of cellphones. Over 68% village

homes have these. Yet, there still are about 28% that don't own mobiles or

landlines.

Highly urbanised states and UTs with small rural populace -Goa, Delhi, Puducherry

, Chandigarh -have a larger proportion of households owning these assets.

Rural households in Punjab, Haryana, TN, Kerala and Gujarat are better off than those in Assam, Bihar, Chhattisgarh, Odisha and Bengal.

Ownership of moveable assets among different social groups

The Times of India (http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=STATOISTICS-CASTE-AWAY-

09072015008027) , Jul 09 2015

The data from the socio-economic and caste census of rural India shows the scarcity of many assets like vehicles, refrigerators and telephones

that are assumed to be necessities of modern life. A comparison of asset ownership among different social groups shows that the deprivation is

far more in SC and ST when compared to others. For instance, two in every ten `other' households own motorized vehicles. The corresponding

figure for SC and ST is just one in every ten households. The pattern is no different for refrigerators, mobile phones, mechanized agricultural

http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=STATOISTICS-CASTE-AWAY-09072015008027

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equipment, irrigated land and so on.

Income disparity: India

Income disparity between rich &

poor growing rapidly

In ’12 Urban Rich Earned 15 Times More Than Poor

Subodh Varma TIG

The Times of India

http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2013/07/28&PageLabel=2&EntityId=Ar00201&ViewMode=HTML


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Sajeev Kumarapuram

(http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?

From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2013/07/28&PageLabel=2&EntityId=Ar00201&ViewMode=HTML)

2013/07/28

Everybody knows that there is a chasm between the rich and the poor. But can it be

measured? And, more importantly, is this disparity growing or coming down?

Consumption expenditure between 2000 and 2012: India

New data based on consumption expenditure surveys shows that income disparity is

growing and at a rapid clip. Spending and consumption by the richest 5% zoomed up

by over 60% between 2000 and 2012 in rural areas while the poorest 5% saw an

increase of just 30%. In urban areas, the richest segment’s spending increased by 63%

while the poorest saw an increase of 33%. The effect of inflation was removed while

making these comparisons.

Here’s another way you can look at these disturbing results: in 2000, the average spend(or income) of the richest group in urban areas was 12 times that of the poorest group;

in 2012, it had increased to 15-fold. In rural areas, the disparity between the haves and the have-nots increased from 7 times to 9 times in these

12 years.

These stark findings emerge from a comparison of data on household spending patterns for 1999-2000 and 2011-12. These are collected by the

National Sample Survey Organisation. Consumption spending — that is, all possible expenditure done by an individual in a household on all

aspects of life — is the closest measure of incomes available in the country.

Clearly, economic policy that resulted in high GDP growth for most of this period has not trickled down to the neediest. Rather, it appears to

be benefitting the already affluent sections more. ===Growth highest for richest 10%, lowest for poorest 10% ===




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Many experts argue that spending and hence income of the uppermost 5% is not completely reflected in NSSO surveys because those who do

their surveys hardly manage to meet and fill out questionnaires of the super-rich households. In other words, the incomes of the super-rich are

probably more than what is reflected in this data.

The richest 10% of Indian society have seen highest growth while the poorest 10% have seen the slowest increase in incomes. The remaining

80% of the people have seen roughly the same levels of growth ranging between 35% and 40% in rural areas and between 40% and 50% in

urban areas over 12 years. That means that for 90% of people, annual growth in income was just over 3% in rural India, and just over 4% in

urban India.

In 2012, a person of the poorest segment in rural areas was spending just Rs 521 per month. So, a family of four would spend about Rs 2,084

per month. In the richest segment, a person spent Rs 4,481 per month which would translate into a monthly spend (or income) of Rs 17,925 for

a family of four. In urban areas, monthly spending by the poorest segment was Rs 700 per person or Rs 2,802 for a family of four and for the

richest group it was Rs 10,282 per person or Rs 41,128 for a four-member family.

Expenditure per person on food

Details of spending on different items provided by the report show that in urban areas, monthly expenditure per person on food was less thanRs 1,000 for 50% of the population while in the richest segment every person on an average spent Rs 2,859.

Some of the food items showing vast disparity between rich and poor included vegetables, fruits, eggs, fish and meat, and milk products.

The data blows the myth that poorer sections are consuming more of fruits, eggs, etc.

A similar multi-fold difference is seen in other key items of expenditure like education, medical and durable goods.

Income and consumption

Times of India (http://epaper.timesofindia.com/Default/Client.asp?

Daily=CAP&showST=true&login=default&pub=TOI&Enter=true&Skin=TOINEW&AW=1393708348876)

Community-wise disparities

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Muslims have lowest living standard in India: Govt survey

PTI | Aug 20, 2013

Muslims were at the bottom in rural

areas, with an average monthly per

capita expenditure of Rs 833, followed

by Hindus at Rs 888, Christians at Rs1,296 and Sikhs 1,498. NEW DELHI:

Among various religious groups,

Muslims have the lowest living standard

with the average per capita expenditure

of just Rs 32.66 in a day, says a

government survey.

At the other end of the spectrum, Sikh

community enjoys a much better

lifestyle as the average per capita

spending among them is Rs 55.30 per

day, while the same for Hindus is Rs

37.50. For Christians it is Rs 51.43.

"At all-India level, the average monthly

per capita expenditure (MPCE) of a

Sikh household was Rs 1,659 while that

for a Muslim household was Rs 980 in

2009-10," said an NSSO study titled'Employment and Unemployment

Situation Among Major Religious

Groups in India'.

The average household MPCE is a proxy for income and reflects that living standards of a family.

According to the study, the average MPCE for Hindus and Christians were Rs 1,125 and Rs 1,543, respectively.

The survey said that average monthly per capita consumption at all-India level was Rs 901 in villages and Rs 1,773 in cities. Overall, theaverage MPCE was Rs 1,128.

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Muslims were at the bottom in rural areas, with an average MPCE of Rs 833, followed by Hindus at Rs 888, Christians at Rs 1,296 and Sikhs

1,498.

In urban areas, Muslims' average MPCE was also the lowest at Rs 1,272 followed by Hindus at Rs 1,797, Christians Rs 2,053 and Sikhs at Rs

2,180.

Rural and urban spendingGujarat slides in both rural & urban spending

Data Raises Doubt Over Devpt Model

Subodh Varma TIMES INSIGHT GROUP

The Times of India (http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?

From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2013/07/22&PageLabel=1&EntityId=Ar00102&ViewMode=HTML)

2013/07/22

How are people in their states actually faring? How does one know whether one ‘development model’ is better than another?

One way is to look at how much a person spends on an average every month; this gives an indication of how much people are earning.

Comparing recently released data on consumer expenditure with data from a decade ago provides a fair idea of which state governments are

delivering and which are sliding. There’s a surprise lurking there.

Gujarat slides down

Gujarat has slid from fourth to eighth in the ranking of states for rural spends, and from seventh to ninth in urban expenditure, according to a

comparative analysis of data on monthly per capita spending between 2011-12 and 1999-2000, both of which are put out by the NationalSample Survey Organisation.


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Amartya Sen backs Bihar’s growth model

Nobel laureate Amartya Sen on Sunday backed Bihar’s growth strategy arguing that growth was not independent of social transformation.

“What is needed is an integrated approach for development and growth,” Sen said at a book release event. The noted economist suggested that

without education and proper health facilities, it was difficult to achieve balanced growth. “Educated labour force is the biggest guarantor.

Education and healthy labour force is able to produce everything from IT to auto parts,” Sen said.

At the same time, he recognized the impressive growth rate, of over 11%, recorded by the eastern state during the 11th five-year plan (2007-

2012) and said it was an important indicator.

Sen’s praise for the Bihar model is significant because the build-up to the general elections has also been framed as a duel between competing

models of growth. One is the inclusive growth model which UPA and Bihar claim to represent, which won praise from Sen. The other,

Gujarat’s emphasis on higher rate as the solution to poverty reduction, is backed by the likes of Jagdish Bhagwati and Arvind Panagariya.

While the state ranks poorly on most human development indicators, its performance has improved in recent years, which economists say is

driven by better administration and steps to improve literacy and health facilities. Bihar is demanding special state status — to access more

central funds and offer tax incentives to attract investment to bolster its growth and development. Chief minister Nitish Kumar has been at the

forefront of the demand and even organized a rally in the national capital to press for the tag.

Renowned economist Nicholas Stern, who has co-edited the book with Rajya Sabha member N K Singh, pushed for a special status tag. “From

the point of view of poverty, distribution of income and point of view of demonstrating change, a special category status would be

appropriate,” he said.

Andhra, TN climb on progress graph

Gujarat may be the poster boy of development and economic growth, but is one of the few states that have slid in economic rankings.

Consumption expenditure of people in Gujarat is growing at a slower rate than the national average, according to a comparative analysis of

data on monthly per capita spending between 2011-12 and 1999-2000, both of which are put out by the National Sample Survey Organisation

(NSSO)

Andhra, The best-performing state

The best-performing state is Andhra, which has dramatically improved from 11th place in 2000 to fifth in 2012 in rural households and from

11th to sixth in urban households.





Another state that has shown major movement in rankings is Tamil Nadu, moving down from second to seventh place in urban per capita

expenditure but improving from sixth to fourth in rural.

Kerala, Punjab, Haryana, TN and AP are the top five states in rural households; Haryana, Kerala, Maharashtra, Karnataka and Punjab are the

top five in urban households.

Growth rates of household expenditures

The same reality is reflected in growth rates of household expenditures over the period. At the national level, average per person spends grew

by 165% in rural areas and 190% in urban areas between 2000 and 2012. Among the states with MPCE growth of urban households lower than

the national average, Gujarat (177%) lies tied with Rajasthan, lower than Uttar Pradesh

and West Bengal but higher than Assam and TN.

Among rural households, per capita spend in Gujarat grew by 165%, again below the

national average of 170%. Most of the poorer states like UP, Bihar, MP and Odisha

were also below the national benchmark. In Haryana too rural incomes are barely above

the national average.

At the other end, the states with high expenditure growth were AP, Kerala, Punjab,

Maharashtra in both rural and urban areas, with TN only joining the leaders for

ruralhouseholds.

Households in cities

Average household debt in cities up 7 times in 10 years

The Times of India (http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=Average-household-debt-in-cities-up-7-times-

22122014001017)

Dec 22, 2014 Subodh Varma

22% of urban families have loans to repay

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Debt levels in urban and rural households- 2002 and 2012

Nearly a third of rural households and a quarter of urban ones are in debt, says a report released this week. This is understandable with the

spread of credit facilities. But the scale of indebtedness revealed is astonishing: between 2002 and 2012, the average amount owed by each

family has jumped seven times in cities and more than four times in rural areas.

About 22% of urban households were in debt and the average debt per family

was Rs 84,625, up from Rs 11,771 in 2002. In the rural areas, 31% of

households were in debt compared to 27% in 2002 -their average debt had

increased from Rs 7,539 to Rs 32,522. The survey , carried out by the NationalSample Survey Organization (NSSO), studied assets and debt across India

through two visits to more than one lakh households in 2013. Such surveys are

done by the NSSO every 10 years.

Average debt is computed by dividing the total debt by total population, which

includes households that have no debt.A better picture of the scale of

indebtedness is seen if the total debt is distributed only over the indebted

households: then the average debt increases to Rs1,03,457 in rural areas and Rs

3,78,238 in urban areas. The survey also estimat ed that average value of assetsamong rural households was about Rs 10 lakh while in urban areas it was nearly

Rs 23 lakh.

The definition of assets used this time round was changed from that of previous surveys. Consumer durables, bullion and jewellery were not

counted as assets. Also, prices of land and building were taken from normative guideline values rather than as reported by the

informant.Hence, asset values reported in this survey are not comparable to previous ones. What is striking in asset ownership is the extreme

inequality between rich and poor.While the average value of assets owned by the richest 10% of the urban population was Rs 14.6 crore, the

poorest 10% owned assets worth just Rs 291 -virtually nothing. In rural areas too, similar inequality is visible. The average asset value of the

richest segment was Rs 5.7 crore compared to Rs 2,507 for the poorest.

Expectedly , wide variation is seen in asset ownership depending upon vocation. In rural areas, cultivators owned assets valued on an average

at Rs 29 lakh while non-cultivators had assets worth about Rs 7 lakh. Similarly , in urban areas, self-employed families had assets worth as

much as Rs 51 lakh compared to about Rs 20 lakh worth of assets owned by wage or salary earners.

The enormous contribution of real estate prices to the explosion in asset values is clearly seen in the fact that in rural areas, 73% of the value of

assets was derived from land and 21% from buildings.In urban areas, while 47% of asset value was from land, 45% was from buildings.

In urban areas, 82% of debt is incurred to finance housing, education, marriages etc and only 18% is for business purposes, showing that the

urban housing boom has been driven by debt. In rural areas, 40% of loans were taken for business.Interestingly , shares and debentures madeup an insignificant part in both rural and urban areas for most. Just 0.07% of asset value of rural households and 0.17% among urban ones

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derived from shares etc.

Urban India: No source of income for 35 lakhs households

The Times of India (http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=35-lakh-urban-families-have-no-income-

04072015028032) , Jul 04 2015

35 lakh urban families have no income

At least 35 lakh families in cities and towns have no source of income while 90 lakh households are headed by women, according to raw and

unreleased data from the Socio-Economic and Caste Census in urban areas, reports Dipak Dash. About 1 crore households own at least one of

four items -fridges, landline phones, washing machines and twowheelers; 86 lakh households own all these.

How Indians spend their money

The Times of India (http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=HOW-INDIANS-SPEND-THEIR-MONEY-

13072014014005) Jul 13 2014

What's eating into our family budgets? Subodh Varma finds out

HEALTHCARE

| TESTING TIMES

We've all felt the pinch of medical bills, and now data from a recent survey on household spending shows why everyone's been feeling the

pain. Total familyspend on medical bills increased by 317% in urban areas and 363% in rural areas for institutional care. At-home medical

expenses increased by about 200% in both urban and rural areas.

Diagnostic tests -X-rays, ECGs, and pathological tests -are the driving force in this relentless upward movement.

For institutional care in hospitals and nursing homes, costs of tests increased by as much as 541% in urban areas between 2000 and 2012. No

comparison is available for rural areas in the same period as test facilities were rare and mostly free in government hospitals. Even for the at-

home patient, costs of diagnostic tests zoomed up by over 400% in the same period.

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For an urban family of four, average medical expenses would be about Rs 200 per month for hospital care or nearly Rs 400 per month for at-

home treatment and care. In rural areas, the average monthly costs for a similar family would work out to about Rs 120 for hospital care and

Rs 250 for at home care. The higher costs even at home are mainly be cause of medicines.

Despite the enormous spending on National Rural Health Mission over the past seven years, and the attempts to expand an affordable health

insurance scheme, the cost increases are substan tially more in rural areas compared to urban areas.

Thus, increases in doctors' fees in hospitals were 433%in rural areas compared to 362% in urban, hospital charges went up by 454%in chargeswent up by 454%in rural areas compared to 378% in urban areas and medicine costs in hospitals went up by 259% in rural versus about 200%

in urban areas. Keeping the patient at home and getting treated seemed a better option in rural areas because at-home costs were not as high as

institutional costs.

What this carnage of family budgets has led to is worrying but unsurprising: there has been a decline in cases of hospitalization. The number of

families that reported expenditure on hospitalization dipped from 19% to 14% in urban areas and from 19% to 15% in rural areas. Lack of

proper facilities at accessible distances is also a factor in dipping cases of hospitalization in rural areas.

Conversely , families that spent on patient care at home increased from 61%to 75% in urban areas and from 62%to 79% in rural areas. The

new data is from a consumer expenditure survey carried out by the National Sample Survey Organisation (NSSO) in 2011-12.

EDUCATION

| COST OF FEES, TUITIONS SKYROCKETS

Even as the thirst for education has increased among Indians, the sys tem has

become more expensive and its quality has gone down. Family spending on

education increased by a jaw-dropping 390% in urban areas in 2011-12 and 433% in

rural areas compared to 1999-2000.

The biggest increase is in the fees charged by educational institutions -628% in

urban areas and an incredible 924% in rural areas. Costs of other related items of

expenditure, like books and stationery, too have shot up in the past 12 years.

That there is a deep felt urge to get the children educated and thus build a better life

than their elders is undoubtedly true. This is confirmed by the fact that the number

of families reporting spending on education has increased from 68% to 76% in urban

areas and from 54% to 66% in rural areas.

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Source: The Times of India


eid=31808&articlexml=HOW-INDIANS-SPEND-THEIR-

MONEY-13072014014005)

But the families have to bear a heavy burden of this cost. In urban areas, a family of

four would spend Rs 726 per month on an average while in rural areas a similar

family would spend Rs 200 every month.

Apart from this di rect spending, various other costs are also incurred by families

including uniforms for school going children, transport to and from the school and

other incidental costs.

The survey shed some light on what is called the `shadow education system', that is,

private tuition and coaching. In 2012, about 12% of families in rural areas were

getting their kids' education boosted by these parallel establishments, up from seven

percent in 2000.

In urban areas private coaching had spread to over 17% families from 15% in 2000.

Costs of such private coach ing have increased by nearly 300 percent in urban areas

and 369% in rural areas. Education spending is highly dependent on how much the

family's income is. And it varies sharply between rural and urban areas. The rich est

5% families in urban areas spend over Rs 900 per person while the poorest spend

ust Rs 16 per person.

In rural areas, the richest 5% In rural areas, the richest 5% spend nearly Rs 300 per person on education while the poorest spend only eight

rupees per person in a month.

FOOD

THE ALOO-PYAAZ THALI

Ever wondered why the rise in prices of onions and potatoes sends governments into a tizzy? The reason is that 91% families in rural areas and

86% in urban areas consume potatoes. Similarly, 96% families in rural areas use onions and 91% in urban areas. So, with practically the whole

population addicted to these two vegetables, it is small wonder that high prices get everybody agitated. It also indicates that those who want to

manipulate prices and make a quick buck are most likely to target onions and potatoes as very few will cut these out of their meals. Of course,

it is possible to hoard these two vegetables because they are not as perishable as most others.

Consumption data from a recent NSSO report shows that apart from onions and potatoes, tomato is the most widely used vegetable, with 75%

of rural and 85% of urban families consuming it. Green chillies are also consumed by over 80% of the population.








What about other vegetables? Spinach and other leafy vegetables (of which there are several in India) are con sumed by about 60% of the

population. Brinjal (or eggplant) is also popular -nearly 60% of rural and 54% urban families eat its preparations.

Lady's Finger (okra), cauliflower, cabbage and carrots are more popular in urban than rural arebut the whole gourd family -sweet-, long, bit

ter-, bottle-gourd, along with the pumpkin family are favoured more in rural areas, perhaps because of their ease of cultivation and very low

costs.

Total monthly consumption of vegetables is about 6.8 kg per person in both rural and urban areas, perhaps one of the very few consumptionitems where there is no rural urban divide.

What about pulses, the single biggest source of protein for a largely vegetarian population? Worryingly, consumption of pulses had been

declining over the years, mainly because of its sustained high prices. But there has been a slight revival in the past 2-3 years. Even then, per

capita consumption of pulses has dipped by about 7% between 2000 and 2012. Arhar (tur) is the most popular dal with about 60% rural and

75% urban families consuming it.

About a quarter of the population reported eating fish or meat, while about 38% families ate eggs. The number of non-vegetarian families has

probably dropped because high prices often drive people to stop eating meat except on occasions. Households eating fish and goat/mutton have

declined since 2000 while chicken is now the meat of choice with 22% rural and 27% urban families eating it.

See also

Labour: India

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