Measuring social group inequalities in household consumption of essential goods

Abstract This study examines consumption inequality among India’s social groups, focusing on several food and non-food expenditures, using two rounds of Household Consumption Expenditure Survey (HCES) data: 2011–12 and 2022–23. The Gini coefficient and generalised entropy indices are employed to achieve the study’s objectives. Findings align with Sen’s Capability Approach, which emphasises that inequality extends beyond income or wealth gaps to encompass freedom gaps. Scheduled Tribes (ST) and Scheduled Castes (SC) exhibit lower expenditure levels, with their capabilities significantly constrained. Other social groups and Other Backward Classes (OBC) demonstrate uneven but more transformative investments, indicating that while some households expand freedoms, others remain deprived. A wide disparity in capabilities persists in non-food functioning, particularly among ST households in urban areas and among others in rural areas. For food categories, ST households show greater divergence in capabilities across both rural and urban centres, though the divergence is less pronounced compared to non-food categories. Decomposition results reveal a consistent decline in GE (2) and GE (0) values, with GE (2) exceeding GE (0) for both food and non-food essentials in rural and urban contexts. Disparities in capabilities related to non-food items are substantially higher than those associated with food items. Policy implications highlight the need for greater attention within social groups rather than between them, with special focus on ST households in urban areas. Initiatives should prioritise improving educational standards, enhancing healthcare accessibility, and subsidising nutrient-rich foods.