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.
Key Highlights
- Financial confidence remains strong: India’s Financial Well-being Index rose to 111.1, outperforming global and APAC benchmarks.
- Cautious spending mindset: Despite stable finances, consumers are holding back on big-ticket purchases, with willingness dropping to around 65%.
- Inflation concerns persist: About 73% of consumers expect prices to rise, especially across fuel, food, and utilities.
- Shift to selective consumption: Spending is focused on essentials and high-value experiences, rather than broad discretionary expansion.
- Savings behaviour remains intact: Consumers are not dipping into savings, indicating continued financial discipline.
- Experience-led spending rising: Categories like leisure travel and lifestyle experiences are gaining share over goods.
- Travel trend: fewer but premium trips: Consumers are choosing quality over frequency, opting for better hotels, flights, and curated experiences.
- Food behaviour shows smart frugality: Households are reducing waste (31%) and optimising consumption, rather than cutting quality or quantity significantly.
- Auto demand softens: Overall vehicle purchase intent has declined year-on-year due to cautious spending on large purchases.
- EVs remain a bright spot: Electric vehicle purchase intent continues to rise, diverging from the broader auto slowdown.
- Consumer anxiety eases slightly: Overall anxiety levels have declined, but concerns around political uncertainty and inflation remain elevated.
