India’s urban households to spend ₹2.19 lakh crore this festive season, shows survey

India’s urban households are estimated to spend about ₹2.19 lakh crore (nearly $24.8 billion) this festive season within three months during September-November period, according to a recent LocalCircles survey report.

This figure is 18% higher from last year’s estimated spending of ₹1.85 lakh crore. This translates into a monthly spending of ₹73,000 crore during the season.

The survey received over 2 lakh responses from 44,000 unique household consumers across 319 districts of the country. A majority of respondents were men, while women accounted for only two-fifth of those surveyed. Almost 70% of these respondents came from Tier 1 and 2 districts, with the remaining from Tier 3 and 4 districts. The total estimated spending figure is based on a calculation that combines the number of urban households in India with their average spending patterns.

What explains the 18% rise in total estimated spending this year?

The report attributed this increase to higher spending by individual households. More number of households are expected to spend over ₹20,000 this season, the survey pointed.

Survey participants were asked about the budget they plan to allocate for festive season spending during the September–November period, in addition to their regular monthly expenses. Of the total surveyed consumers, a little less than half responded to this question.

Over 15% indicated their spending to be over ₹50,000, with a smaller share saying this budget to go beyond ₹1 lakh. A little less than a fourth of the participants claimed to spend between ₹20,000 and ₹50,000, within a span of three months.

Thus, the report stated that the rise in total estimated festive spending is driven by households planning to spend over ₹20,000, with their share expected to increase to 37% in 2025 from 26% last year, marking an 11-percentage point jump.

Meanwhile, nearly a quarter of respondents said they plan to spend between ₹5,000 and 20,000 during the festivals, while 13% expect to spend between ₹2,000-₹5,000 and 4% below ₹2,000. Additionally, over 22% either claimed they would not spend anything this season or said they could not determine their budget yet.

What is expected to give a further fillip to spending this festive season?

The report pointed out that festive spending in general has surged over the years due to higher disposable incomes and rise in e-commerce sales. Spending during the Raksha Bandhan season also surged 75% to around ₹21,000 crore this year, from ₹12,000 crore in 2024. This rise is higher than the spending expected during the September–November period, even though the latter period is considered more festival-rich period.

This is on the back of easing inflation despite ongoing concerns around employment, the report said. The RBI’s Urban Consumer Confidence Survey also showed that the Current Situation Index rose to 96.5 in July from 95.4 in May, while the Future Expectations Index rose to 124.7 from 123.4. The RBI survey reveals the consumer optimism level around economy and income.

Aside from consumer mindset changes, Tier 2 and 3 spending is also set to drive the overall festive season spending, in the wake of a good monsoon and growing e-commerce reach.

The LocalCircles report added that the introduction of the next generation of GST reforms by the Centre is expected to lower prices on white goods, consumer electronics, food, and groceries. The reforms, effective September 22, 2025, are expected to give festive spending a boost.