Indian consumers are entering the festive season with renewed confidence, balancing optimism with financial discipline, according to Deloitte India’s latest Consumer Signals: India Chapter. The findings point to a decisive shift in spending behaviour - from caution to confidence - driven by easing inflation, digital empowerment, and improved financial stability.

India’s Financial Wellbeing Index (FWBI) climbed to 110.3, well above the global average of 103.6, pointing to stronger consumer confidence and perceived financial stability. After a brief dip last month, the index registered a modest uptick in September 2025, reflecting improving comfort across key indicators of financial health.

“The Indian consumer today stands at the intersection of optimism and intent, more discerning, digitally empowered and financially confident than ever before. What we are witnessing is not just a rebound in sentiment, but a recalibration of priorities. Consumers are learning to stretch value, not compromise on aspiration,” said Anand Ramanathan, partner and consumer industry leader, Deloitte South Asia.

Price-related anxieties are easing, with inflation concerns falling 5 percentage points year-on-year to 70%. Deloitte attributes this softening to declining retail inflation since late 2024 and recent GST revisions, both of which have enhanced purchasing power and festive cheer.

The report highlights a clear uptick in monthly spending intent, with the Estimated Monthly Amount (EMA) rising from 2% in July to 4% in September 2025. Consumers are learning to optimise rather than cut back, directing expenses towards experiences that enhance quality of life. Categories such as travel, dining, apparel, and personal care continue to see growing interest.

Ramanathan believes this balance of aspiration and responsibility is the new face of India’s consumption story.  “This balance between aspiration and responsibility is shaping a more mature, self-assured consumption economy; one that is resilient, sustainable and uniquely Indian in its outlook.”

A sharp dip in the Food Frugality Index (FFI), now at its second-lowest level in three years, signals reduced restraint and a renewed appetite for discretionary spending on food. Nearly one-third of consumers are saving by reducing home food waste, reflecting a shift towards smarter consumption rather than sacrifice. Deloitte notes that India continues to outperform its Asia-Pacific peers, maintaining lower frugality and stronger confidence across essential categories.

Leisure and travel spending remain strong, evolving into a consistent and planned household expense. Travellers intend to spend 2% more on experiences such as premium stays, dining, and local attractions. Domestic trips and hotel bookings are showing a year-on-year uptick, reflecting a steady revival in non-essential spending.

Big-ticket purchases are also back on the table. The Vehicle Purchase Intent (VPI) Index jumped 6.6 points year-on-year, with only 23% of Indian consumers now finding new vehicles unaffordable, compared to 62% globally. Electric vehicle (EV) adoption continues to rise sharply, 60% of respondents plan to buy an EV, up from 47% two years ago, driven by improved affordability, growing sustainability awareness, and supportive policies.

Overall, Deloitte’s data paints a picture of an evolving consumer - one that is confident yet thoughtful, willing to spend but mindful of value. As Ramanathan summed up, Indian consumers are no longer just recovering from economic shocks; they are redefining what it means to spend with purpose and confidence.