Indian Households Increase Quarterly Spending to Rs 56,000 by 2025

Average quarterly household spending in India has risen significantly, reaching approximately Rs 56,000 in 2025. This marks an increase of over 33 percent over the past three years, according to a report by Worldpanel by Numerator. The increase in spending reflects evolving consumption behaviors across both urban and rural areas.

The report, titled Kharcha 3.0, highlights a steady rise in household expenses, particularly in urban markets. Urban families, which are the largest contributors to this increase, saw their average quarterly spending jump from around Rs 42,000 in 2022 to Rs 56,000 in 2025. In urban areas, the average quarterly expenses escalated from Rs 52,711 in June 2022 to Rs 64,583 in March 2024 and further to Rs 73,579 in March 2025.

Rural households are also experiencing a notable increase in expenses. The average quarterly expenditure in rural areas rose to Rs 46,623 in March 2025, up from Rs 36,104 in June 2022. This upward trend emphasizes the financial pressures faced by families across the country as they navigate the rising costs of living.

The report indicates that consumers, including those from lower-income households, are increasingly feeling the strain of rising expenses. As noted, “as expenses continue to increase, more consumers are struggling to manage their budgets effectively.” The report’s findings suggest a shift in spending priorities, with households allocating more resources towards education and debt repayment.

Consumers are adjusting their buying habits in response to these financial pressures. Many are prioritizing essential items and occasionally making impulse purchases. A notable trend is the increasing preference for cheaper alternatives to manage budgets effectively.

In terms of handling their finances, the report reveals that more than half of consumers, specifically 54 percent, plan to save any additional income they receive. Following this, 38 percent intend to spend on daily necessities, while 18 percent will focus on debt repayment. Only 7 percent of consumers are allocating funds for luxury or premium products.

The data presented in this report, based on a sample of 6,000 households, primarily includes housewives as key decision-makers in fast-moving consumer goods (FMCG) purchasing. This demographic insight is crucial for understanding the evolving dynamics of consumer behavior in India.

As household expenses continue to rise, the financial landscape for Indian families is changing. Understanding these shifts is essential for businesses and policymakers as they navigate the implications for consumer spending and economic growth in the years to come.