National: Deloitte India has released the latest edition of its Consumer Signals India Chapter, highlighting a shift in Indian consumer behaviour towards more purposeful and value-driven spending amid rising geopolitical and economic concerns.
According to the report, Indian consumers are becoming increasingly discerning in their spending patterns, prioritising essentials, quality, and meaningful experiences while deferring large-ticket purchases. The study noted that rising anxiety linked to global economic developments is weighing on sentiment and near-term purchase decisions.
India’s Financial Well-Being Index (FWBI) improved to 111.1 in March 2026, up from 109.1 in March 2025, outperforming both global and Asia Pacific averages, which stood at 102.7 and 102.0 respectively. The report said this reflects relative financial stability among Indian consumers, although caution around discretionary spending continues to persist.
“Indian consumers are entering a phase of calibrated consumption. They are becoming more mature and resilient, balancing aspiration with financial discipline and intentional decision-making. Households are not stepping back from consumption; they are becoming sharper about where value lies, prioritising essentials, upgrading experiences and deferring large commitments. Improved food frugality and stable savings behaviour reinforce this shift. At the same time, continued interest in EVs points to a growing focus on future readiness,” said Anand Ramanathan, Partner and Consumer Industry Leader, Deloitte South Asia.
The report highlighted that the willingness to make large non-essential purchases fell by five points month-on-month to 65%, even as 79% of consumers remained confident about meeting upcoming payments.
Concerns around inflation also intensified, with 73% of Indian consumers expecting higher prices across categories in the coming month. Utilities and fuel emerged as the biggest areas of concern, with anxiety around utility costs rising by eight points month-on-month and fuel concerns increasing by 11 points year-on-year.
Deloitte’s Food Frugality Index (FFI) rose to 98.3, signalling more active management of grocery budgets by households. The report noted that consumers are focusing on optimisation rather than cutting back entirely, with 31% reducing food waste while relatively fewer consumers reported compromising on quality or quantity.
In the travel and hospitality segment, consumers are increasingly favouring premium and curated experiences despite a moderation in overall travel intent following the festive season peak. Spending preferences are shifting towards full-service airlines, upgraded seating, and premium accommodations, reflecting a growing preference for comfort, reliability, and experience-led consumption.
The report also pointed to softer vehicle purchase intentions, with the Vehicle Purchase Intent (VPI) index moderating to 85.2 in March 2026. Around 43% of consumers said their existing vehicle continued to meet their needs, while 12% expressed hesitation towards making large purchases amid economic uncertainty.
However, electric vehicles continue to attract strong consumer interest, with EV purchase intent remaining steady at 60%. The report attributed this to increasing demand for technology-driven features, lower maintenance costs, and sustainable mobility solutions.
Deloitte noted that Indian consumers are demonstrating structural resilience by adapting to economic realities while continuing to seek value, quality, and experiences that align with long-term priorities.
