Rural spending in Narendra Modi's Gujarat above national average, but urban below

Mar 20 2014, 12:09 IST
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The highest score for rural areas in India is from Kerala where monthly per capita consumer expenditure is almost a third more than the national average. The highest score for rural areas in India is from Kerala where monthly per capita consumer expenditure is almost a third more than the national average.
SummaryOther than Gujarat, three states doing better than national average are Haryana, Punjab, Rajasthan.

Bhagwati has backed the Gujarat model of development.

Economists, however, point out that the lower consumption expenditure is based on historical and cultural reasons. In Gujarat’s case, it could be because of high savings and investments rate. “The data has to be seen in context of the previous surveys,” said NR Bhanumurthy, economist at NIPFP. In the previous NSS survey in FY10, Kerala remained amongst top spending states with average urban monthly per capita expenditure of Rs 2,413 and rural spending of Rs 1,835; Gujarat’s urban spending at Rs 1,909 remained below national average.

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