The HCES 2023–24 (Household Consumption Expenditure Survey) just dropped — after a long gap since 2011–12 — and it tells us more about Indian households than just food vs gadgets.
But if you’re a trader or investor, here’s why you should care 
Rural vs Urban Consumption: A Gap, But Shrinking📊
| Category | Rural (₹/month) | Urban (₹/month) |
|---|---|---|
| 2011–12 MPCE (adjusted) | ₹1,430 | ₹2,630 |
| 2022–23 MPCE (real terms) | ₹2,008 | ₹3,510 |
Rural consumption grew ~40%, urban ~33%.
Gap narrowing = demand for FMCG, 2-wheelers, digital services may see long-term lift in Bharat.
What Are Indians Spending On?
| Category | Share in Rural MPCE | Share in Urban MPCE |
|---|---|---|
| Food | 46% | 39% |
| Non-Food | 54% | 61% |
| Within Food – Milk | 9.5% | 7.9% |
| Within Non-Food – Rent | 6.6% | 15.3% |
Takeaway:
Urban households are leaning more into rent, education, transport, and communication — implying a consumption shift toward services.
Market Implications
- FMCG stocks: Long-term play with rising rural spending.
- Consumer durables & 2-wheelers: Bharat is buying more.
- Digital infrastructure: Rising communication spend signals growth.
- REITs & Housing Finance: Higher urban rent spend = opportunity?
- Discretionary stocks: Restaurants, appliances, apparel in urban pockets.
India’s consumption engine is firing again, and this time, rural Bharat is participating more.
Read more about the survey here.
As income patterns change, will rural and semi-urban India become the next growth zone for mid-cap consumption stocks?