Indian consumers are becoming “more cautious” about their “broader economic environment and their own financial prospects” amid rising economic and geopolitical uncertainties, with a growing number prioritising savings and cutting discretionary spending, according to findings of a Kantar survey.While confidence in economic and personal financial prospects has softened, consumers are responding by strengthening savings intentions, said the latest Kantar’s State of the Nation consumer sentiment study.
The consumers “are responding by strengthening savings intentions, becoming more selective in their spending and prioritising purchases that deliver long-term value,” it said.
However, at the same time, travel and meaningful experiences continue to remain of importance, said the findings of the survey, which was conducted in May amongst a sample of 1,684 consumers aged 21-55 years in metro and non-metro cities.Despite greater financial caution in everyday spending, consumers continue to prioritise experiences that contribute to wellbeing and personal fulfilment.”The findings suggest that while consumers are becoming more disciplined in managing day-to-day finances, they remain unwilling to compromise on experiences that deliver emotional value, personal enrichment and a sense of escape from growing economic and geopolitical uncertainty,” it said.The first wave of the study, conducted in January 2026 ahead of the Union Budget, found consumers balancing optimism with caution as concerns around inflation, income stability and financial preparedness began to emerge.The survey has found that only 48% of respondents expect the Indian economy to improve in 2026, down from 60% in January, while concerns over layoffs have risen to 41% from 36% earlier.Moreover, expectations around personal financial growth have moderated, it said.”61% expect their savings and investments to either remain same or decline versus 2025, only 39% expect them to increase,” it said.Healthcare expenses also emerged as the “biggest financial worry”, cited by 85 per cent of respondents.This was followed by rising living costs cited by 80% while 71% mentioned worry over meeting rent and loan EMI commitments.”In response, consumers are increasingly focused on building financial buffers,” it said.Nearly two-thirds, around 63%, say they are very likely to save more for themselves and their family and future.”Spending intentions across discretionary categories such as dining out, entertainment, shopping and subscriptions have weakened,” it said.Consumers planning to increase spending on big-ticket items have fallen from 46% in January to 44%.”Inflation remains the primary reason for this caution, cited by 65% of Indians,” it said.
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