Rising Incomes Fuel Consumer Spending Boom

With rising per capita and disposable incomes, Indian consumers are significantly increasing their spending on consumer durables and FMCG products. Multi-brand outlets have also made a notable comeback in FY25, according to recent reports.

Consumer Durables Lead the Charge

Average monthly spending on consumer durables soared by an impressive 72% in FY25. This surge is attributed to the growing trend of home ownership and the demand for furnishing new homes with appliances, marking a dramatic rebound from the modest 6% rise observed in FY24.

FMCG Sector Shows Steady Recovery

The FMCG sector has signaled a steady recovery from its sharp slump in FY23, with a 4% consumption growth in FY25. Meanwhile, average monthly spending in multi-brand outlets surged by 12%, showcasing a strong recovery from the previous year's decline.

Quick Commerce and Cash-Led Consumption Trends

Quick commerce achieved a 10% year-on-year consumption surge, driven by hyper-localization. North India led in cash-led consumption, with Bihar joining New Delhi and Uttar Pradesh as top consumption hotspots. The monthly ATM withdrawal average ticket size grew by 3% year-on-year to Rs 5,658 in 2025.

Infrastructure Driving Consumption Growth

A robust cash infrastructure is underpinning the consumption growth, with significant increases in currency in circulation, ATMs, and bank branches from 2014 to 2024. This period saw a 157% surge in currency in circulation, a 32% increase in ATMs, and a 36% expansion in bank branches.