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MoSPI Considers Diary-Based HCES for High-Income Households to Tackle 9.8% Urban Non-Response Rate

EconomyPolityHIGH
Target:UPSC GS-IIIMPSCBankingTeachingSSC GAPrelims HighMains HighStatic GK Link
20 Aug 2026
~2 min
Source: Indian Express
Key Data:Urban non-response 9.8%Rural non-response 4.1%Affluent urban non-response 11%Affluent rural non-response 3.9%2.6 lakh households surveyed405 goods and services
Bodies:MoSPIRBINSSO
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What This Article Covers

1.MoSPI plans to use diary-based data collection for high-income households in gated societies for the 2027-28 HCES due to rising non-response rates (urban 9.8% in 2022-23 vs 2.8% in 2017-18).

2.The diary method minimises 'recall error' but creates a challenge of integrating data collected via two different methods (door-to-door vs self-reporting).

3.HCES data is used to update the CPI basket, which RBI uses for inflation targeting (4% with 2-6% band), making survey accuracy crucial for monetary policy.

The Big Picture
Prelims · HighMains · High

To counter rising non-response from affluent households in gated societies, MoSPI is piloting a 'diary-based' self-reporting method for the next Household Consumption Expenditure Survey (HCES) in 2027-28. This shift is critical because the HCES data directly impacts CPI basket weights, inflation targeting by RBI, and policy making, but raises concerns about data comparability due to differential recall errors between survey methods.

Exam Lens

Quick Exam Facts From News

Nodal MinistryMinistry of Statistics and Programme Implementation (MoSPI)
Survey NameHousehold Consumption Expenditure Survey (HCES)
Next HCES StartMid-2027
Urban Non-Response (2022-23)9.8%
Rural Non-Response (2022-23)4.1%
Affluent Urban Non-Response11%
Affluent Rural Non-Response3.9%
Goods/services surveyed405
RBI CPI Inflation Target4% (band 2-6%)

1-Minute Revision

  • ›Nodal Ministry: Ministry of Statistics and Programme Implementation (MoSPI)
  • ›Survey Name: Household Consumption Expenditure Survey (HCES)
  • ›Target this Data: Urban non-response rate in 2022-23 HCES: 9.8% (up from 2.8% in 2017-18). Affluent urban non-response: 11%.
  • ›Target this Nodal Body: Ministry of Statistics and Programme Implementation (MoSPI) — conducts HCES.
  • ›Target this Concept: Diary-based data collection vs door-to-door survey — recall error difference.

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Q1Static LinkageEasy

Which ministry is responsible for conducting the Household Consumption Expenditure Survey (HCES) in India?

Q2Statement-basedHard

Consider the following statements regarding the Household Consumption Expenditure Survey (HCES):

1. The HCES data is used to update the Consumer Price Index (CPI) basket.

2. The urban non-response rate in the 2022-23 HCES was lower than in the 2017-18 survey.

3. MoSPI is considering a diary-based data collection method for high-income households to reduce recall error.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what was the urban non-response rate in the 2022-23 Household Consumption Expenditure Survey?

Q4Application/ImpactMedium

What is the primary concern raised by former Chief Statistician Pronab Sen regarding the proposed diary-based data collection method for the HCES?

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