Indian consumers’ festive optimism outpaces global confidence

New Delhi: Indian consumers are entering the festive season with renewed confidence and financial optimism, outpacing global benchmarks, according to Deloitte India’s latest Consumer Signals: India Chapter. With inflationary pressures easing and the recent Goods and Services Tax (GST) revisions enhancing purchasing power and festive cheer among consumers, this brings a new wave of consumption. This wave is backed by greater financial stability and renewed appetite for discretionary spending,” a Deloitte report said.

India’s Financial Wellbeing Index (FWBI) rose to 110.3 in September - well above the global average of 103.6 - indicating improving household stability and stronger consumer sentiment. A key trend in the report is the sharp drop in the Food Frugality Index (FFI), now at its second-lowest level in three years.

This reflects a shift from restraint to value-driven spending, with consumers optimising rather than cutting back. Vehicle Purchase Intent (VPI) climbed 6.6 points year-on-year, signalling increased confidence in big-ticket purchases. Electric vehicle adoption also surged, with 60 per cent of consumers now considering EVs, up from 47 per cent two years ago.

Discretionary spending - particularly on travel, entertainment, and personal care - continues to rise, supported by easing inflation and recent GST reforms, which have improved affordability across sectors.

Estimated monthly consumer spending rose from 2 per cent in July to 4 per cent in September. The Indian consumers today are “more discerning, digitally empowered, and financially confident than ever before,” said Anand Ramanathan, Partner and Consumer Industry Leader at Deloitte South Asia.

“What we are witnessing is not just a rebound in sentiment, but a recalibration of priorities. Consumers are learning to stretch value, not compromise on aspiration.”