EVs, vacations, gadgets and upgrades: India's new wealth priorities in 2025

Vehicle purchase intent (VPI) up 6.6 points YoY, with EV adoption rising to 60 percent, reflecting confidence in big-ticket and sustainable purchases.

Indian households are loosening their purse strings — but with purpose. According to the Deloitte Consumer Signals India Report 2025, spending is rising across travel, vehicles, and lifestyle categories, even as consumers remain cautious about jobs and prices. The Financial Well-Being Index for India jumped to 110.3, outpacing the global average of 103.6, while consumer confidence rose 8 points over last year, marking its highest level since 2022.

 

Inflation anxiety continues to cool — only 38% of Indian consumers now cite rising prices as their top concern, compared to over 60% last year, helped by stable fuel and food costs. Meanwhile, 62% of households report higher discretionary spending intentions in the next six months, particularly on travel (up 11%), personal electronics (up 9%), and automobiles (up 7%).

 

Savings, however, remain strong. More than 70% of urban consumers say they are saving as much or more than before the pandemic, signalling a cautious but confident middle class that’s prioritising value over volume.

 

"The Indian consumer today stands at the intersection of optimism and intent, more discerning, digitally empowered and financially confident than ever before. What we are witnessing is not just a rebound in sentiment, but a recalibration of priorities. Consumers are learning to stretch value, not compromise on aspiration," said Anand Ramanathan, Partner and Consumer Industry Leader, Deloitte South Asia.

 

Key Findings 

India’s Financial Wellbeing Index (FWBI) continues to outperform both Asia Pacific and global benchmarks (110.3 vs 103.6 globally), underscoring stronger consumer confidence and perceived financial stability.

 

Price-related anxieties are easing, with inflation concerns dropping by 5 percentage points year-on-year (Y-o-Y) and only 70 percent of consumers now citing inflation as a worry (down from 72 percent). This softening aligns with declining retail inflation since November 2024 and recent GST reforms, both of which are expected to further ease price pressures and spur growth.

 

The Spending Intentions Intent reflects consumer’s dual inclination to save for the future while re-engaging with lifestyle spending is shaping a balanced consumption curve. The estimated monthly spending amount ( percent change, EMA) has gone up from 2 percent in July to 4 percent in September 2025. Discretionary spending remains below pre-pandemic peaks; however, it continues to rise Y-o-Y, especially during festive and seasonal cycles. Leisure continues to anchor discretionary outlays, with travel, entertainment and wellness maintaining strong momentum, signalling a steady revival in consumer confidence and a cautious but sustained recovery in non-essential spending.

 

India’s Food Frugality Index (FFI) has dipped to its second-lowest level in three years, proving reduced restraint and a renewed appetite for discretionary food spending. One-third of shoppers are saving by reducing home-food waste, reflecting a shift from sacrifice to smarter consumption. Rather than cutting back, consumers are optimising or managing portion sizes, minimising waste and seeking better value instead of eliminating items altogether. Value-oriented Stock Keeping Units (SKUs), private labels and budget-friendly packs are gaining traction among price-sensitive yet quality-conscious buyers. Notably, India continues to outperform its APAC peers, maintaining lower frugality levels and stronger consumer confidence across essential categories.

 

Despite ongoing financial caution, Travel and Hospitality have emerged as a consistent and planned household expense, continuing to absorb a steady share of disposable income. Consumers are allocating more towards richer, high-quality experiences by prioritising comfort, convenience and add-ons such as dining and local attractions. Leisure travel remains strong, fueled by rising domestic trips, premium stays and festive demand, with rail trips and hotel bookings showing a slight Y-o-Y spike. Notably, travellers plan to spend 2 percent more on experiences, underscoring the shift towards value-rich, memorable journeys.

 

India’s Vehicle Purchase Intent (VPI) Index rose 6.6 points Y-o-Y, signalling that consumers are no longer deferring big-ticket buys and continue to invest deeply in experience-led premium purchase Vehicle affordability perceptions have strengthened, with only 23 percent of Indian consumers citing new vehicles as unaffordable, versus 62 percent globally. Recent tax reforms have further boosted affordability, fuelling near-term purchase plans. Demand is shifting to feature-rich, tech-forward models prioritising safety, connectivity and comfort. The intent of purchasing electronic vehicles (EV) continues to surge, with 60 percent planning to buy an EV (up from 47 percent two years ago), driven by cost efficiency, sustainability awareness and supportive policy measures.

 

As India’s consumers evolve from cautious spenders to confident decision-makers, their choices are shaping a new era of purposeful consumption, one that blends aspiration with responsibility and sets a benchmark for global markets.