ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Consumption ExpenditureSubscribe to Consumption Expenditure

Perceived Economic Well-being among Rural Indian Households

The Census 2011 estimated the presence of 450 million internal migrants in India, which is an increase of 45% over the Census 2001. As a corollary, the domestic flow of remittances has seen a significant rise. This paper aims to understand how this financial support affects the perceived economic well-being of households in rural India. The analysis shows that the recipient family’s estimation of their economic status improved dramatically after receiving these payments. It discusses the importance of frequency of receiving the remittances in order to understand the impact on the economic sentiment. For households who got continuous payments over the study period, the effect is positive and appears to be stronger.

Can Growth Be Sustained?

Slump in consumption, surging prices, and slow growth in key sectors are likely to stall the recovery.

Impact of MGNREGA on Consumption Expenditure of Households

This study attempts to quantify the impact of the Mahatma Gandhi National Rural Employment Guarantee Act programme on the level and pattern of consumption expenditure of rural households at the national level using a difference-in-differences method. The findings indicate an increase in the monthly per capita consumption expenditure of participant households and a change in their consumption patterns with the share of high-value and nutrient-rich food in their consumption basket going up. Further the participant households have also smoothened their consumption by investing in assets such as durable goods.

India's 'Poverty of Numbers'

The number of "poor" derived by applying price adjustment to an old consumption basket, which is largely what official poverty measures have done, are very different from estimates based on actual consumption baskets that have changed over time. For instance, the share of cereals in household expenditure halved between 1993-94 and 2011-12 in rural areas. In the light of this, we ask if all expenditure would be on food, what percentage of the population would be unable to meet the prescribed calorie requirement? Adding a "minimum" level of expenditure on clothing-bedding-footwear, fuel and light, and conveyance to the "derived" sum of food expenditure provides a second counterfactual. Similarly, the cumulative addition of expenditure on other consumer goods and services provides further counterfactual scenarios.

Doubling Farmers' Incomes by 2022

How realistic is the objective of the Government of India to double the income of farmers by 2022? Is there a precedent? From estimates of change in income of agricultural households over the period 2003-13, this article suggests what needs to be done to achieve a doubling of real incomes. A focus on income from cultivation alone will be inadequate. Policy aimed at increasing net income from animal farming will be key.

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