60% Indian consumers to spend more in coming months: Report

Indian consumers are entering 2026 with high confidence and strong spending intent, according to the latest Global Consumer Radar Report by Boston Consulting Group (BCG). The report found that households expect to increase spending across categories, led by automobiles and mobile devices, even as inflation remains the main driver of higher outlays.

BCG said 60% of Indian consumers expect their total household spending to rise over the next six months, up from 50% in September 2024. While discretionary purchases account for a relatively higher share of expected spending growth in India compared with other markets, inflation continues to play a central role. About 69% of consumers who expect to spend more said the increase is largely due to rising prices of essentials and non-essentials.

The report also highlighted India’s rapid adoption of generative artificial intelligence. As of November 2025, 62% of Indian consumers said they had used GenAI tools, up from 48% in February 2025. Indian users lead globally in applying GenAI for shopping-related activities, with 64% using such tools to guide brand and product decisions, compared with 63% using them for work.

Commenting on the India Findings of the report, Parul Bajaj, India Leader - Marketing, Sales and Pricing Practice, BCG, said, “India’s consumers are rapidly embracing a fully digital, AI-enabled path to purchase, with GenAI now firmly embedded in everyday decision-making. With 62% of consumers having already used GenAI tools, and more people applying them to shopping than even to work, India is emerging as one of the most advanced markets globally in how technology shapes consumption. For brands, this signals a decisive shift: think beyond SEO and optimize in a world of AEO (answer engine optimisation) with structured, trustworthy and comparison-ready content.”

Kanika Sanghi, Partner and Director, BCG, added, “Even as many global markets are seeing softening, Indian consumers continue to show confidence with 60% expecting to increase household spending over the next six months - there are differences across categories, albeit. For businesses, the priority is to decode the drivers and shape of this shift - understanding personal preferences, category dynamics, shifting motivations and channel those insights into bold portfolio bets that match India’s strong consumption cycle."

The report noted that optimism among Indian consumers remains high despite global uncertainty. Only a net 17% of respondents said recent geopolitical conflicts or political events could slow India’s growth, the second-lowest level after China. In contrast, more than 60% of consumers in the United Kingdom, France and Germany expressed similar concerns.

The global report also noted that the net percentage of consumers who agree that geopolitical conflicts will slow their country’s growth. Developed markets turn increasingly pessimistic amid a tough macroeconomic environment.

BCG found that 61% of Indian consumers expect continued good economic conditions, compared with 34% who anticipate widespread unemployment or economic distress, resulting in a net optimism score of 27%. This places India second only to China and well above the global average, which is around minus 12%.

Spending expectations were positive across all tracked categories. Automobiles showed the strongest net increase at 70%, followed by mobile plans and mobile devices at 63% each.

The report also pointed to contrasts in consumer behaviour. While nearly eight in 10 Indian consumers said sustainability and climate change influence their day-to-day purchase decisions, only 9% to 15% said they are willing to pay more for sustainable options, indicating a gap between stated intent and actual behaviour.

Similarly, although 57% of consumers said they are open to trying new brands, 84% ultimately purchased familiar brands, suggesting inertia in buying habits.

BCG said these trends indicate continued momentum in India’s consumption cycle, even as other major markets face slower growth, with technology adoption and consumer confidence expected to shape spending patterns in the years ahead.