Urban India’s spending is back, but cautious

Upcoming festivals, easing prices are nudging households to loosen their wallets

- Suneera Tandon

India's financial wellbeing sentiment has shown mixed signals in recent quarters.

(AFP)

A calmer inflation outlook and recent tax relief have given India’s urban consumers room to breathe, and to spend.

Deloitte's latest consumer survey shows a rebound in discretionary spending, especially in leisure, restaurants, electronics and household goods. The upcoming festivals and easing prices are nudging households to loosen their wallets, even as job-related anxiety threatens to temper the mood.

“Consumers remain financially confident, supported by easing price inflation concerns and higher savings. They are selectively increasing discretionary spend, favouring premium and experience-driven purchases,” said Deloitte's September quarter consumer pulse survey of 1,000 consumers, which measured financial security among households as well as future shopping intentions.