Rising financial stability underpins resilience, while spending pivots towards essentials, premium experiences and future-focused choices such as EVs
Indian consumers are becoming more cautious and value-conscious in their spending patterns, even as overall financial stability improves, according to the latest Consumer Signals India report by Deloitte.
The report highlights a shift towards “calibrated consumption”, where households are balancing aspirations with financial discipline. While spending on essentials remains strong, discretionary spending is increasingly directed towards high-value experiences rather than large-ticket purchases.
India’s Financial Wellbeing Index (FWBI) rose to 111.1 in March 2026 from 109.1 a year earlier, significantly outperforming global and Asia-Pacific averages. This indicates improved financial stability among Indian households, even as caution continues to shape consumption decisions.
However, willingness to make large non-essential purchases has declined, with consumers deferring big-ticket spending amid economic and geopolitical uncertainties. The report noted that 79 per cent of respondents remain confident about meeting upcoming financial obligations, reflecting a stable but measured outlook.
Inflation concerns are also rising, with 73 per cent of consumers expecting prices to increase across categories in the near term. Anxiety is particularly high around utilities and fuel costs, signalling pressure on household budgets.
In the food segment, households are increasingly adopting smarter consumption practices. The Food Frugality Index rose to 98.3, indicating a shift towards efficiency rather than compromise. Around 31 per cent of consumers are reducing food waste, while relatively few are cutting consumption or trading down to cheaper alternatives, suggesting that quality remains a priority.
Travel and hospitality trends reveal a similar pattern. While overall travel intent has softened slightly following seasonal peaks, consumers are opting for premium experiences. Spending is shifting towards full-service airlines, upgraded travel options and higher-end accommodation, with interest in curated experiences showing a modest increase.
The automotive segment reflects cautious sentiment, with vehicle purchase intent declining by 12 points year-on-year. Many consumers feel their current vehicles suffice, while others are hesitant to commit to large expenditures. At the same time, interest in electric vehicles remains strong at around 60 per cent, highlighting a long-term shift towards sustainable and technology-driven mobility.
Anand Ramanathan, Partner and Consumer Industry Leader at Deloitte South Asia, said Indian consumers are becoming more mature in their financial behaviour, focusing on value and purposeful spending rather than curbing consumption altogether.
The report underscores that India’s consumer base remains structurally resilient, adapting to evolving economic conditions while continuing to prioritise quality, value and meaningful experiences.
