While the Indian economy appears to be in bad shape, provisional data from the 68th round of the National Sample Survey (NSS) office’s just concluded household expenditure survey are encouraging. According to the Survey, average inflation-adjusted expenditure for July 2011- June 2012 rose by about 4.5% in two years. The poorest 10% of the population in urban areas registered an almost 17% increase in expenditure. That in rural areas lagged behind, though it was also on the rise. Rural household consumption grew faster than urban consumption compared to the 66th round. All this proves that Indian households have higher incomes and spend more. It should be an indicator for the Planning Commission in formulating its policy. The NSS data reveal that growth in recent years has led to better living standards even for the weaker sections of the community. Progress has been made in the quality of houses and access to drinking water for several households. One in two households has access to banking service, as against one in three in the 2011 census. Almost half of the rural households now own mobile telephones, one in three owns a TV which was one in five ten years ago.
Do the data reveal a significant fall in poverty levels? One cannot be sure. However, the focus on growth has paid dividends. In 2009-10, there was severe drought which halted income growth in the previous round. But in 2011-12, income has been on a rising trajectory. The Centre has to take serious note of such data and proceed accordingly to make the best of a bad bargain.