India's 2025 Spending Trends and Economic Challenges

In 2025, Indian households spent more on insurance and travel, with insurance spending surging to Rs 25 per Rs 100 withdrawn from ATMs.

Travel spending was also significant, though it declined from previous years.

People spent less on online shopping and traditional media, preferring streaming platforms.

Essential items like food and household goods saw stable spending.

The amount of cash taken out of ATMs increased, especially during the festive season.

However, there are concerns about wage growth and household debt.

Rural wage growth improved due to lower inflation, but urban wage growth remains a concern.

Households have been borrowing more, leading to increased financial liabilities.

The government's measures, like tax cuts and GST reforms, have supported consumption, but there is still uncertainty about future demand and economic stability.