Brands
Indian consumers are trading down in volume but trading up in value, Deloitte finds
A new report reveals a resilient but sharply discerning consumer who is spending less on more things and more on fewer, better ones
MUMBAI: India’s consumers are not retreating. They are recalibrating. The latest edition of Deloitte India’s Consumer Signals report, released on May 7, paints a portrait of a spending public that is simultaneously more cautious and more demanding, cutting back on big-ticket commitments while quietly upgrading the experiences they do choose to pay for.
The headline number is encouraging. India’s Financial Well-Being Index rose to 111.1 in March 2026, up from 109.1 in March 2025, and comfortably ahead of the global average of 102.7 and the Asia Pacific average of 102.0. On paper, Indian consumers are in decent financial health. Underneath, however, the data tells a more nuanced story. The willingness to make large, non-essential purchases dropped 5 points month-on-month to 65 per cent. Concerns about rising prices are sharpening, with 73 per cent of Indian consumers expecting higher prices across most categories in the coming month. Anxiety around utilities has jumped 8 points month-on-month, with 75 per cent of consumers expressing concern. Worry about gasoline and fuel costs has surged 11 points year-on-year.
Anand Ramanathan, partner and consumer industry leader at Deloitte South Asia, framed the shift with precision. “Indian consumers are entering a phase of calibrated consumption,” he said. “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.”
The food data reinforces that reading. India’s Food Frugality Index rose to 98.3, signalling that households are managing grocery budgets more actively but not, crucially, sacrificing quality to do so. Around 31 per cent of consumers are reducing food waste. Only 11 per cent report buying less than they would like. Roughly 12 per cent are trading down to lower-cost options, and 15 per cent are opting for store brands. The dominant behaviour, in other words, is optimisation rather than austerity.
The travel picture tells a similar story of premiumisation under pressure. Overall leisure travel intent has eased following the festive peak, including a 7 per cent year-on-year drop in international travel intent. But those who are travelling are spending more deliberately. Consumers are increasingly allocating budgets towards full-service airlines, upgraded seats and upper-class lodging. Intent to spend on curated experiences has risen 1 point to 29 per cent compared with the same period last year.
Vehicles present the starkest divergence. The Vehicle Purchase Intent index has moderated to 85.2 in March 2026. Some 43 per cent of consumers say their current vehicle still meets their needs; 12 per cent cite economic uncertainty as a reason to hold off on major spending. But electric vehicles are a conspicuous exception. EV purchase intent has held steady at 60 per cent, driven by appetite for technology-forward features, lower maintenance costs and the pull of sustainable mobility. Caution on big purchases, it seems, does not extend to the future of transport.
Ramanathan summed it up neatly. “Continued interest in EVs points to a growing focus on future readiness,” he said.
The picture that emerges from Deloitte’s data is of a consumer class that has not lost its ambition but has sharpened its judgment. Geopolitical anxiety and economic uncertainty are real, but they are producing discipline rather than despair. India’s consumers are not spending less. They are spending smarter. For brands chasing volume, that is a warning. For those chasing loyalty, it is an invitation.
