Average household spending in India has risen 33% in the past three years, from about ₹42,000 in June 2022 to over ₹56,000 in March 2025, according to Worldpanel India’s Kharcha 3.0 report.The syndicated study, which surveyed around 6,000 households, found that 45% of families are struggling to manage expenses, while only 17% say they are living comfortably.Urban households reported the sharpest rise in expenses, with average quarterly spending climbing to ₹73,579 in March 2025 from ₹52,711 in June 2022. Rural households also saw a rebound, with spending up to ₹46,623 from ₹36,104 over the same period.
Among income groups, urban NCCS AB households (upper income/affluent) recorded a 15% year-on-year increase, while rural NCCS CDE households (lower to middle income) saw an 18% jump.Consumer sentiment has weakened alongside the rise in expenses. RBI’s Consumer Confidence Index slipped to 95.4 in May 2025 from 98.5 in March 2024. Looking ahead, 59% of households expect no change in their financial condition over the next three months, while 30% fear it could worsen.The study further showed that spending priorities are shifting toward essentials, education, and debt repayment, with consumers cutting back on impulse purchases and premium products. If given extra income, 54% of households said they would save it, while 38% would spend on daily necessities, and just 7% on luxury or premium products.K Ramakrishnan, Managing Director – South Asia, Worldpanel by Numerator, said, “With rising expenses across both urban and rural segments and most families prioritising essentials, savings, and debt repayment, consumers are becoming increasingly cautious in their choices.”Also Read: Bikaji Foods after ED summons: Role in Rajasthan Premier League ‘limited to sponsorship’
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