This Diwali season witnessed a remarkable surge in high-value spending, with Indian consumers opening their wallets wider than ever before. According to a comprehensive survey by Paisabazaar, the festive spirit translated into significant financial outlays, particularly through credit cards.
The Big Spenders Emerge
The most striking revelation from the survey shows that a substantial 42% of credit card users crossed the ₹50,000 spending threshold during the Diwali celebrations. This indicates a strong shift toward premium purchases and luxury experiences among Indian consumers.
Changing Consumer Patterns
The survey highlights several key trends in festive spending behavior:
- Premiumization trend: Consumers are increasingly opting for high-end products over basic alternatives
- Experience-driven purchases: Beyond material goods, spending on travel and experiences saw significant growth
- Digital convenience: Credit cards emerged as the preferred payment method for big-ticket purchases
- Confidence in spending: The high spending levels reflect growing consumer confidence in the economy
What's Driving the Spending Spree?
Several factors contributed to this festive spending boom. The post-pandemic pent-up demand, combined with attractive discounts and easy credit availability, created the perfect environment for consumers to indulge in premium purchases. The survey indicates that consumers were not just buying essentials but splurging on luxury items, electronics, jewelry, and holiday packages.
Implications for the Economy
This robust spending pattern signals positive momentum for the Indian retail and manufacturing sectors. The high-value transactions suggest that consumers are willing to spend on quality and brand value, indicating a maturing consumer market. The credit card spending data also points toward increasing financial inclusion and comfort with digital payment systems.
The Paisabazaar survey results paint a picture of an increasingly confident Indian consumer, ready to celebrate festivals with greater financial enthusiasm than ever before. This trend sets an optimistic tone for the upcoming holiday season and the new year.
