ndian consumer spending may rise this year reveals a report based on the fourth wave of the UBS Evidence Lab India post-COVID consumption outlook consumer survey. The survey, which was conducted with 1,500 Indian consumers online, reveals that high income and upper- to mid-income sections of India’s income pyramid using a socio-economic classification is not representative of the larger population. 

The survey corresponds to the upper income households who will have largely seen income and employment continuity during the pandemic. Notably, the top 20 per cent of the Indian population accounts for the bulk of discretionary consumption (59 per cent of discretionary consumption in rural areas and 66 per cent in urban areas). 

However, nearly three-quarters of respondents have seen stable or increasing income levels in this period, largely similar to the last survey, while 24 per cent of the respondents have seen a decline in income since last year. More than 70 per cent of respondents anticipate that their income will increase in 2024, while 23 per cent anticipate it to remain the same. 

Furthermore, about 60 per cent of the respondents have reported a price increase more than 6 per cent over the last 1-2 years and 57 per cent of the respondents expect a price increase of more than 6 per cent over the next 2 years. The survey also highlighted that about 65 per cent of the households have experienced household income going up by more than inflation. Notably, the inflation rate rose by 1.57 per cent from 2021 to 6.70 per cent.