A recent survey has revealed that the salaried individuals across India allocate more than 33% of their monthly income toward paying loan EMIs. The study underlines the growing burden of credit-driven consumption.
The report, based on a comprehensive study of over 30 lakh tech-savvy consumers, showed 39% of consumers’ total spending going toward obligatory expenditures, followed by 32% on necessities and 29% on discretionary spending.
Perfios, a B2B SaaS Fintech company, along with PwC India, has launched an insightful report titled How India Spends: A Deep Dive into Consumer Spending Behavior.
The study encompasses a wide range of demographics across India, from Tier 3 cities to metropolitan areas, as well as income groups ranging from Rs 20,000 to Rs
1,00,000 per month. It highlighted 62% of discretionary spending directed toward lifestyle products, including fashion and personal care items.
In terms of the money spent on lifestyle purchases by a person living in a metro, there is a 6.4% increase by Rs 2,022, compared to that spent by a person residing in a Tier-3 city, where this figure is Rs 1,882 monthly. Of all the lifestyle purchases by consumers, 20% is allocated to fashion. This subcategory includes transactions for purchasing apparel and accessories from designated merchants.
Another interesting aspect highlighted by the report is the percentage of entry-level earners engaging in online gaming transactions stands at 22%, a figure that decreases to 12% as income rises to above Rs 75,000 per month.
It also said that the average rent expenditure in Tier-2 cities is 4.5% higher than in Tier-1 cities, and individuals in Tier-2 cities spend 20% more on medical expenses than their Tier-1 counterparts.
On an average, a person in a Tier-1 city spends Rs 2,450 per month on medical expenses, while those in metro cities spend the least, averaging Rs 2,048.