Indians to spend more on discretionary items by 2030, boosted by higher incomes
1 month ago

Indians to spend more on discretionary items by 2030, boosted by higher incomes

Live Mint  

NEW DELHI : Households in both rural and urban India are expected to spend more on discretionary products such as apparel, footwear, travel, and wellness by the end of the decade, driven by a doubling of per capita income by 2030 and availability of more avenues to indulge, a report by Deloitte India and Retailers Association of India said. “This evolution of spending habits marks a clear shift towards higher discretionary expenditure, particularly in urban areas, where convenience, entertainment and comfort are becoming key drivers of consumption," the report, released on Thursday, said. “India’s discretionary spending is entering a new phase of growth, driven by rising incomes, digital adoption, and evolving consumer preferences," said Kumar Rajagopalan, CEO, Retailers Association of India, an industry body of online and offline retailers. This evolution of spending habits marks a clear shift towards higher discretionary expenditure, particularly in urban areas, where convenience, entertainment and comfort are becoming key drivers of consumption," according to the report.

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History of this topic

As India’s consumption landscape evolves, we must strengthen our economic recovery
2 weeks, 3 days ago

As India’s consumption landscape evolves, we must strengthen our economic recovery

Live Mint  

India’s consumption landscape has undergone a significant transformation over the last two decades, influenced by shifts in income distribution, economic shocks and changes in spending behaviour. Data from PRICE’s ICE 360 pan-India household survey provide a detailed account of these trends, shedding light on the financial resilience of different income groups and the impact of events such as the pandemic. …

100 Crore Indians Struggling To Afford Anything Beyond Basics: Study
1 month ago

100 Crore Indians Struggling To Afford Anything Beyond Basics: Study

ABP News  

About 100 crore Indians do not have enough money to spend on extra goods or services, according to a recent study released by Blume Ventures. The top 10 per cent of India's population, about the same size as the entire population of Mexico, are the main contributors to consumption and economic growth, as mentioned in Blume Ventures' Indus Valley Annual …

100 crore Indians have no extra money to spend: Report
1 month ago

100 crore Indians have no extra money to spend: Report

India Today  

India, with its massive population of over 1.4 billion, has a much smaller group of people who actively spend on non-essential goods and services, according to a report by Blume Ventures. The venture capital firm's report said that only about 130-140 million Indians form the country’s "consuming class," meaning they have enough disposable income to buy beyond basic needs. The …

This budget is remarkable for its fiscal restraint—apart from other aspects
Trending News
1 month, 3 weeks ago

This budget is remarkable for its fiscal restraint—apart from other aspects

Live Mint  

The Union budget for 2025-26 is being hailed as a “thanksgiving’’ for the middle-class, while its personal income tax relief is being called “historic’’ and has hogged most of the limelight. Importantly, in absolute terms, the fiscal deficit is likely to remain flat at ₹15.7 trillion in 2025-26, as compared to 2024-25, and lower than its level of ₹16.5 trillion …

India’s consumer market to become world’s second largest by 2030: Report
1 month, 4 weeks ago

India’s consumer market to become world’s second largest by 2030: Report

Live Mint  

New Delhi, : India's consumer market is on track to expand 46 per cent by 2030, making it the second-largest globally, according to the Edelweiss Mutual Fund report Rising incomes, a young workforce, and rapid urbanization are expected to drive consumption growth across the country. This growth is largely fuelled by India's expanding middle and upper-middle-income population, which is leading …

Budget 2025 preview—Part 3: Skilling and jobs, exports, and middle-class woes
2 months, 1 week ago

Budget 2025 preview—Part 3: Skilling and jobs, exports, and middle-class woes

Live Mint  

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Budget 2025 preview—Part 3: Skilling and jobs, exports, and middle-class woes
2 months, 1 week ago

Budget 2025 preview—Part 3: Skilling and jobs, exports, and middle-class woes

Live Mint  

Skilling: From degrees to employability India is in the middle of a demographic dividend—where we have more hands to work than to support—and it's going to last till 2040. That’s one reason India will find it hard to replicate China’s growth story, which revolved around drawing foreign investments in local manufacturing with the aim to export. India is also facing …

Does e-commerce threaten corner stores? India’s consumption survey data has some clues
2 months, 1 week ago

Does e-commerce threaten corner stores? India’s consumption survey data has some clues

Live Mint  

Household Consumption Expenditure Survey data has been making headlines for its deep dive into India’s standard of living and evolving consumption patterns. Categories like clothing and footwear have seen noticeable online adoption in urban areas, underlining the popularity of online platforms for discretionary spending, where, according to a report by Pahle India Foundation, convenience and choices drive consumption. While rural …

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2 months, 3 weeks ago

India’s household consumption survey doesn’t feed public policy all that well

Live Mint  

India’s government recently released the findings of its 2023-24 survey of household consumption expenditure and expressed satisfaction at the seeming narrowing of spending gaps in society at large and between rural and urban populations. However, we must not set too much store by the monthly per capita consumption expenditure figures of this sample survey. India’s free foodgrain scheme may explain …

India’s K-shaped story: Will the script change in 2025?
2 months, 4 weeks ago

India’s K-shaped story: Will the script change in 2025?

Live Mint  

Mumbai: What do the iPhone and Indian stocks have in common? As India’s real estate sector successfully finished its fourth year of a boom cycle, bouts of sales pickup and accelerated project launches have pushed up property prices across all seven major metros in recent years. Moreover, tepid affordable housing demand has prompted real estate developers to focus on the …

India Economic Outlook: Deloitte Predicts Strong Growth at 7%-7.2% for FY25
7 months, 3 weeks ago

India Economic Outlook: Deloitte Predicts Strong Growth at 7%-7.2% for FY25

The Hindu  

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Rural-Urban Consumption Dynamics in India
9 months, 2 weeks ago

Rural-Urban Consumption Dynamics in India

Deccan Chronicle  

Over the past decade, India has witnessed a notable rise in consumption spending in both rural and urban areas, indicating a shift in economic dynamics and lifestyle choices. Furthermore, the changing food habits of the Indian populace have contributed to the evolving consumption patterns observed in both rural and urban areas. In conclusion, the equivalent rise in consumption spending in …

Revenge-spending Indians drank and dined after being cooped up in covid years
1 year ago

Revenge-spending Indians drank and dined after being cooped up in covid years

Live Mint  

NEW DELHI : Indians spent liberally on dining at hotels and restaurants and on alcohol in 2022-23 while going easy on clothing, food and non-alcoholic beverages, clearly marking out their preferences emerging from two years of pandemic lockdowns. Growth in private final consumption expenditure on food and non-alcoholic beverages slowed to 6.2% in FY23 from 6.6% in the year before, …

Discretionary Spending Could Almost Triple to $2k Billion By 2030
1 year, 2 months ago

Discretionary Spending Could Almost Triple to $2k Billion By 2030

Deccan Chronicle  

Chennai: Expansion of private spending would lead to greater share of discretionary spending in India's consumption basket. Our estimates suggest that aggregate discretionary consumption could almost triple from $657 billion in 2022 to as much as $2,000 billion by 2030. Expanding aggregate private spending would see a greater share of discretionary spending in India's consumption basket. Barclays’ estimates suggest that …

India to have 100 million affluent citizens by 2027, claims report
1 year, 2 months ago

India to have 100 million affluent citizens by 2027, claims report

Hindustan Times  

India's affluent class is expected to be 100 million by 2027, a report by Goldman Sachs stated on Friday, adding that the indigenous companies selling premium goods will outperform the broad-based rivals. According to the Goldman report, the purchasing power of top earning Indians has increased in the past decade, due to a strong economic growth, stable monetary policy and …

Average household spending rose 3.5% from August 2023 to July 2024, shows govt. survey
1 year, 8 months ago

Average household spending rose 3.5% from August 2023 to July 2024, shows govt. survey

The Hindu  

India’s average household consumption spending on a per capita basis rose about 3.5% in real terms through August 2023 to July 2024 from a year ago, as per the Household Consumption Expenditure Survey, and the Centre asserted this signals a decline in consumption inequality as well as a narrowing gap between urban and rural spends. In real terms, the average …

Consumer spending in India expected to be high this festive season: Report
2 years, 5 months ago

Consumer spending in India expected to be high this festive season: Report

Live Mint  

Indian consumers have expressed a strong desire to buy more discretionary products during the festive season while coming out of the pandemic, according to Deloitte's Global State of Consumer Tracker. "Despite concerns over inflation, the planned spending over the next four weeks will see spike across age groups in all categories," Deloitte said in a press statement. Coming out of …

Why the cautious Indian consumer is bad news for GDP
2 years, 6 months ago

Why the cautious Indian consumer is bad news for GDP

Live Mint  

NEW DELHI' : There’s a seeming mismatch between India’s high GDP growth rates and persistently weak consumer sentiments. Since 58-60% of the GDP of India is on account of consumption, sustaining even a 7% GDP growth rate will be impossible unless the Indian consumer spends liberally. Ordinary Indians are still struggling to manage household expenses because income levels are not …

That cute, cheap shirt you bought on sale is too expensive
3 years, 11 months ago

That cute, cheap shirt you bought on sale is too expensive

Live Mint  

We, Indians, were never consumerists by nature, at least not in the way we are today. The influence of fast fashion, combined with artificially created demand from incentivized pricing, has irrationally put pressure on our entire community, driving us into a loop of "more and fast". The consumer, on the other hand, is now looking at buying the best deal, …

Opinion | A case of wilful spenders turning into forced savers
4 years, 9 months ago

Opinion | A case of wilful spenders turning into forced savers

Live Mint  

As India unlocks, consumers are likely to unleash a wave of pent-up spending that will send retailers scrambling to restock their shelves and bolster manufacturing activity. During 2014-2018, free-flowing personal loans from both banks and shadow banks helped raise demand for consumer durables, despite weak wage growth. All told, households saturated with debt, banks that are risk averse, shadow banks …

Decisive measures vital to revive India’s growth
5 years, 2 months ago

Decisive measures vital to revive India’s growth

Deccan Chronicle  

The Union Budget 2020-21, to be presented to Parliament by finance minister Nirmala Sitharaman on Saturday, February 1, comes at a time when the Indian economy is facing headwinds from a growth slowdown, on account of both domestic and global factors. CII has suggested that the 2019-20 fiscal target may be relaxed by 0.5 per cent to 0.75 per cent, …

From shampoo to cars, cautious spending tells the story of slowing consumption
5 years, 10 months ago

From shampoo to cars, cautious spending tells the story of slowing consumption

Live Mint  

Mumbai: India’s consumers are being tested after helping drive the fastest-growing major economy. Economic sluggishness may persist for a year, according to Credit Suisse Group AG, given high interest rates and stress among India’s state-run and shadow banks. “The slowdown in consumer goods has been sharper than we had earlier expected,” said Suvodeep Rakshit, a Mumbai-based economist at Kotak Institutional …

High-end fashion trumps jewellery spending in 2018
6 years ago

High-end fashion trumps jewellery spending in 2018

Hindustan Times  

Affluent Indians’ spending on high-end fashion and electronics has grown, and even surpassed jewellery spends, finds a report. The American Express’ report titled “Luxury Spend Analysis 2018” showed that high-end fashion contributed 42 per cent of total luxury spends in 2018. “While jewellery spending dominated the category till 2013, we have seen other segments - including electronic and high-end fashion …

Technology, young demography changing travel dynamics
8 years, 11 months ago

Technology, young demography changing travel dynamics

Live Mint  

Many Indians view travel as a necessity. Over the past year, it has launched various retail-focussed products, including foreign exchange and holiday apps, prepaid currency card, and a savings account. Abraham Alapatt, president and group head-marketing, service quality, financial services and innovation, Thomas Cook India, talks about how technology is shaping the travel sector and what is changing the mindset …

Booming middle class: India's consumer spending to more than double to $2.4 trillion by FY19
9 years, 8 months ago

Booming middle class: India's consumer spending to more than double to $2.4 trillion by FY19

Firstpost  

Rapid growth in personal incomes combined with a more open domestic market to make India an increasingly attractive market for foreign companies New Delhi: India’s growing middle class makes it an attractive market for foreign companies and the country’s consumer spending is likely to more than double to $2.4 trillion by 2018-19, said an Economist Intelligence Unit study. Moreover, rising …

Underlying optimism is biggest driver of consumption growth
10 years, 8 months ago

Underlying optimism is biggest driver of consumption growth

Live Mint  

Aggregate consumer expenditure is likely to increase from ₹ 45 trillion in 2010 to nearly ₹ 150 trillion by 2020—a more than threefold increase in 10 years. Boston Consulting Group consumer research shows that at similar income levels, nuclear families spend nearly 25-40% more per capita than joint families. Urban consumers do spend more—in many consumer goods categories, the penetration …

Indian travellers splurge on vacation: Survey
10 years, 9 months ago

Indian travellers splurge on vacation: Survey

India TV News  

By contrast, 79 per cent of Indians expect to spend $500 or less for a week's vacation inside their own country.It has also been found that globally, the largest proportion of travellers' budget goes into accommodation, followed by flights, food, shopping, tours entertainment, local transportation.Globally, travelers devote more of their travel budget to alcoholic beverages than they do rental cars.Indian …

Rural India takes the lead in art of splurging
11 years, 5 months ago

Rural India takes the lead in art of splurging

Hindustan Times  

As the urban buyer slackens in her shopping spree, a lot is riding on the rural consumer. The consumer goods companies, equity investors and policymakers are now betting on rural spending to push sales in the Indian economy. Rural spending on clothes, footwear, consumer services and conveyance has The actual share of these items in rural household budgets is still …

In a first, rural India consumes more than urban peers
12 years, 6 months ago

In a first, rural India consumes more than urban peers

Firstpost  

CRISIL says that if this boom is to be sustained, it is critical to substitute short-term income boosters. New Delhi: For the first time since India’s economic reforms began two decades ago, consumption in rural India grew faster than in urban India. Citing preliminary data released for 2011-12 by the National Sample Survey Organisation, rural consumption per person during the …

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