Jammu Kashmir Records Steady Rise in Household Consumption, Says Centre | Kashmir Life

SRINAGAR: Jammu and Kashmir has reported a steady rise in average household consumption levels over the past two years, according to data placed before the Lok Sabha, as the Union Finance Ministry rejected suggestions that economic policies were enriching only the wealthy while leaving the poorest behind.

The Ministry said the latest Household Consumption Expenditure Survey (HCES) shows rural Jammu and Kashmir’s average monthly per capita consumption expenditure rising from Rs 4,296 in 2022–23 to Rs 4,774 in 2023–24, while urban consumption increased from Rs 6,179 to Rs 6,327 during the same period.

Responding to a question on the income levels of the poorest citizens, the Ministry clarified that India does not centrally collect income data by economic class and relies on consumption as a proxy for income distribution. It told the House that the consumption data across the country indicates improvement for the bottom segments, not decline.

The nation-wide averages show rural MPCE rising from Rs 3,773 in 2022–23 to Rs 4,122 in 2023–24, and urban MPCE increasing from Rs 6,459 to Rs 6,996. The Ministry said the rise was “the maximum for the bottom five to ten per cent of India’s population”, both rural and urban, suggesting that the poorest sections have recorded proportionately stronger improvements than any other group.

The government also said that inequality indicators have improved. The Gini coefficient, the benchmark measure of inequality, declined from 0.266 to 0.237 in rural areas and from 0.314 to 0.284 in urban India between 2022–23 and 2023–24. The Ministry emphasised that this decline indicates a narrowing of inequality rather than a widening of the income gap.

In its reply, the Ministry also cited NITI Aayog’s discussion paper on multidimensional poverty, which estimates that the share of India’s poor has fallen sharply from 29.17 per cent in 2013–14 to 11.28 per cent in 2022–23. The government said this translates into nearly 24.8 crore people exiting poverty over a decade, underscoring what it described as the impact of targeted welfare programmes.

Responding firmly to the claim that current economic policies make “the rich richer and the poor poorer”, the Ministry said it does not agree with that assessment. It argued that the government’s economic and social policies are designed around inclusive development, focusing on income generation, social protection, and improving access to amenities. It listed major welfare and support schemes including Pradhan Mantri Awas Yojana, the National Rural Employment Guarantee Scheme, National Social Assistance Programme, various livelihood missions, crop insurance payments, PM-KISAN transfers, fertiliser subsidies, interest subvention for dairy cooperatives and the Agri-Infrastructure Fund.

The government also highlighted improvements in access to basic amenities through schemes such as the Jal Jeevan Mission, Swachh Bharat Abhiyan, Ujjwala, Saubhagya, Ayushman Bharat and the Jan-Dhan financial inclusion initiative, saying these had helped improve the quality of life for low-income groups.

Employment indicators were cited as another sign of recovery. The Ministry said the labour market has strengthened beyond pre-COVID levels, with the unemployment rate for individuals aged fifteen and above falling from 5.8 per cent in 2018–19 to 3.2 per cent in 2023–24. It said capital expenditure, improved logistics, the boost to manufacturing and support for MSMEs had together created new jobs and strengthened purchasing power.

On future steps, the government pointed to the Skill India Mission, which aims to provide industry-relevant skills through a nationwide network of training centres, and the PM Vishwakarma scheme launched in 2023 to support artisans and craftspeople in eighteen traditional trades. It also underlined the progressiveness of India’s tax system, where higher-income groups pay higher rates and surcharges.

The government told the House that the Union Budget 2025–26 proposes substantial tax relief for the middle class by raising the no-tax threshold to Rs 12 lakh per annum under the new tax regime and restructuring slabs to reduce the burden across income groups. It said these measures, along with enhanced pensions, affordable housing schemes, public health initiatives and entrepreneurship support, are intended to raise disposable incomes and address economic vulnerabilities.

By placing Jammu and Kashmir’s figures alongside the national data, the government said the broad trend across the country points to rising consumption among the poorest groups, declining inequality and continued policy focus on improving the economic condition of low-income households.
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