Without directly wading into the debate over the rise in income and wealth inequality in the country, the Finance Ministry on Friday asserted that India has experienced “inclusive growth” over the past decade, citing “reassuring findings” of the Household Consumption Expenditure Survey of 2022-23.
“The rural-urban divide in MPCE [monthly per capita consumption expenditure] has declined considerably. Within rural and urban areas, the consumption of the lowest 5% of the MPCE population grew at a faster rate than the top 5%, pointing to a decline in economic inequality over the last decade,” the Ministry contended in a review of the economy.
Juxtaposing the MPCE numbers with the per capita gross national income, or PCI, revealed an inclusive trend in economic growth, it argued. “The MPCE/PCI ratio has increased for all consumption classes except the top 5% in rural India and the top 10% in urban India. This progress occurred despite the once-in-a-century COVID-19 pandemic,” it stressed.
