Indian Household Spending Climbs 33% in 3 Years

New Delhi : Household spending across India has seen a steady surge, rising by more than 33% in the last three years to touch an average of ₹56,000 per quarter in 2025, according to the Kharcha 3.0 report by Worldpanel (Numerator). The study, based on a sample of 6,000 households, highlights changing consumer behavior across both urban and rural regions.

The report noted that urban families continue to outspend rural households, but rural areas are also witnessing a sharp rebound in consumption. Average quarterly expenses in urban markets rose from ₹52,711 in June 2022 to ₹73,579 by March 2025. In comparison, rural households’ average expenses climbed from ₹36,104 in June 2022 to ₹46,623 by March 2025.

The study further revealed that the increase in spending was not restricted to higher-income groups. Even lower-income households in both rural and urban areas have recorded higher expenses this year, underscoring the mounting pressure on family budgets.

Experts attribute part of this rise to greater spending on education, debt repayment, and essential goods, while discretionary purchases and luxury spending remain low. With costs mounting, more families are turning to cheaper alternatives and reducing impulse purchases to balance their budgets.

Interestingly, the report also found that over half of consumers (54%) would choose to save any additional income, while 38% would use it for daily necessities. Around 18% said they would allocate extra funds to debt repayment, and only 7% expressed interest in luxury or premium products.

Overall, the findings highlight the shifting priorities of Indian households in 2025 — where savings, education, and essentials dominate, while lifestyle and premium consumption take a backseat.