What do average Indians spend their money on?


Consumer spending in India has increased rapidly in recent times and stands at approximately INR 159628.06 billion in the second quarter of the year 2015 according to market observations and studies. Consumer spending has always stood at around INR 9136.68 billion all throughout 2004 to 2015. These are statistics obtained from official and governmental sources. The high consumer spending figures indicate that Indians are still bullish about the market and economy. Consumer confidence is at an all time high and there is a sense of certainty over the inception of the new government. India has been topping consumer confidence indexes with a score of 126 as per Nielsen’s survey published some time back. The index of confidence is steadily growing though some of the euphoria surrounding the advent of the new government has dropped or faded in recent times.

Yet, consumption has still been rampant in basic categories as job security has always been a major concern for Indian citizens. Yet, urban Indians continue to be really optimistic about professional prospects in the country. Approximately 66% of Indian citizens are said to be sorted with their personal finances and have a willingness to purchase products in sectors like electronics, exotic food and beverages, real estate, automobiles, education and other consumer products. Housing and automobiles are the biggest consumables in the country though electronics and other consumer products report the highest volumes in overall consumption. India is now the third largest economy in Asia and is witnessing huge growth volumes in terms of overall consumption. The stable government will now lead to greater consumerism during festivals like Diwali and Rakhi. These are times when consumer spending peaks in sectors like apparel, food and beverages, appliances, automobiles and the like.

Even the biggest consumer products companies in the country have reported an increase in profits to the tune of 8-10% on a yearly basis. Consumer products have seen skyrocketing growth in the country with more and more multinational and international companies are coming to the country. Even food and beverage companies are reporting increases in profits owing to fast paced consumption. The best fashion and lifestyle brands have also set up shop in the country and people now spend up to 20% of their income on accessories, apparel and gadgets annually. With greater discounts and offers provided by manufacturers and retailers, consumerism has increased even in income segments where actual cash in hand figures have not increased to a large extent.

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