Significant uptick in Indian consumer spending as festive season nears, notes Deloitte

Festive consumer spending: Indian consumer spending is likely to experience a significant uptick during the forthcoming festive season, primarily fuelled by increased purchases of celebratory items and luxury goods, highlighted by a recent survey conducted by Deloitte. According to Deloitte's ConsumerSignals research, approximately half of the survey participants express confidence in their ability to effectively manage unexpected expenses in the near future.

As the festive season draws closer, consumer confidence in India is on the rise, with 56 per cent of respondents indicating their willingness to allocate funds for celebratory items. In the short term, the survey projects a surge in consumer spending, particularly in categories such as apparel, personal care, recreation, entertainment, and leisure.

Festive anticipation builds

The report notes that these trends are indicative of an impending increase in expenditure as the festive season approaches. Rajeev Singh, Partner and Consumer Industry Leader, Deloitte Asia Pacific, said that the robust growth of India's economy is prompting consumers to embrace premium and luxury spending. This shift is evident across various sectors, including consumer durables, travel, and hospitality, with notable growth even in Tier II and III markets. Discretionary spending is poised for an uptick, benefiting industries such as retail, automotive, travel, and hospitality.

Furthermore, the survey reveals that Indian consumers are not only making luxury purchases but also planning exciting travel adventures, as demonstrated by a surge in bookings for domestic and international flights.

(With PTI Inputs)