Discretionary spending on the rise as consumption revives: Report
Indian consumers are showing lower levels of anxiety, resulting in willingness to increase spending on more discretionary items
As spending is shifting more towards discretionary items, India is witnessing a revival in consumption with Indians slowly returning to offices, according to a report by Deloitte. Post the two waves of the pandemic, the country is cautiously returning to a state of business as usual, it said. Further, the declining of Covid-19 cases coupled with the an aggressive vaccination drive have brought in a new wave of confidence amongst Indian consumers, the report said. Moreover, Indian consumers are less hesitant about in-person and activities, all of which are positive trends for India’s economic revival, it added.
It also added that the employees are expected to be in office on a phase by phase basis, with utmost precautions, keeping strong safety protocols in place.
Indian consumers are showing lower levels of anxiety, resulting in willingness to increase spending on more discretionary items. This is also accompanied with the festive season and lower Covid-19 cases.
International travel increasing
The report based on a survey said that consumers are seen actively spending 36% on cable TV, clothing and footwear, 33% on electronics, 25% on furnishings, 22% on restaurants and 12% on alcohol.
Also, 57% of Indians surveyed are planning for international travel for leisure in the next three months. This indicates that Indian consumers are all set for international travel as various countries are lifting travel restrictions for India.
It also said that various initiatives to allow movement of passengers between countries like air bubbles, vaccine passports, travel corridors and vaccinated travel lane (VTL), search inquiries for travel to international destinations, have been on rise, providing a glimmer of hope for the beleaguered travel and hospitality sector.
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