India's Consumer Spending Patterns: More Than 33% of Income Spent on Loan EMIs

In a latest report released by Perfios and PwC India, it has been observed that earning individuals from all levels of cities in India are spending over 33% of their income on loan EMIs. The research, which examined the consumer behaviour of more than 30 lakh tech-savvy shoppers, came to the conclusion that 39% of total expenditure is on obligatory expenses, followed by 32% for necessities and 29% on discretionary expenditure. Interestingly, 62% of the discretionary spend goes towards lifestyle spends. The report also reveals that individuals in tier 2 towns spend 20% higher on medical bills than individuals in tier 1 towns. This change in the spending behavior of consumers is an indication of increasing credit-fueled consumption in India's changing market.

 

Source: Perfios and PwC India report