49% of families have increased spending on essential items in 2023: Survey

As much as 46% of Indian households have increased spending and are feeling more financially secure than last year, according to the India Consumer Sentiment Index (CSI) by Axis My India, a leading consumer data intelligence company.

The survey also reveals that 49% of respondents are investing in mobile phones, showcasing a shift towards technology. These insights reflect India’s changing consumption patterns based on consumer spending power and lifestyle choices.

The survey also sheds light on public awareness and participation in the Ayushman Bharat–Jan Arogya Yojana, a pivotal health insurance scheme by the Government of India.

The December net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +9.9, which is an increase of +0.9 from the last month. The sentiment analysis delves into five relevant sub-indices – Overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits, and entertainment & tourism trends.

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The survey used Computer-Aided Telephonic Interviews and included 5,143 participants from 35 states and UTs. Among them, 72% were from rural areas and 28% from urban areas. In terms of regions, 23% were from the North, 24% from the East, 28% from the West, and 25% from the South of India. Among the participants, 60% were male and 40% were female. Looking at the largest groups, 30% were aged between 36 and 50 years old, while 25% were aged between 26 and 35 years old.

Key findings

• Overall household spending increased for 58% of families, which is a decrease of 2% from last month. Consumption remains the same for 33% of families. The net score, which was +51 last month, has dipped to +50 this month.
• Spending on essentials like personal care and household items has increased for 49% of families, which marks an increase by 5% from last month. Consumption remains the same for 36% of families. The net score, which was at +27 last month, has surged to +34 this month.
• Spends on non-essential and discretionary products like AC, car, and refrigerators has increased for 15% of families. Consumption remains the same for 79% of families. The net score, which was +3 last month, is at +9 this month.
• Expenses towards health-related items such as vitamins, tests, and healthy food have surged for 44% of the families, which marks an increase by 7% from last month. Consumption remains the same for 41% of families. The health score, which has a negative connotation, i.e., the lesser the spend on health items, the better the sentiments, has a net score value of -30 this month.
• Consumption of media (TV, Internet, Radio, etc.) has increased for 23% of families which is an increase by 3% from last month. The net score, which was -1 last month, is at +2 this month.
• Mobility has increased for 8% of the families, which is an increase of 1% from last month. The net score, which was -4 last month, is at -5 this month. Mobility remains the same for 78% of the families.

Pradeep Gupta, Chairman & MD of Axis My India, said, “The prevailing sentiment is one of optimism, with many experiencing an economic improvement over the past year. However, this optimism is mixed with a sense of constancy for some, as they view their financial situation as unchanged from the previous year. These insights go beyond simply depicting the current scenario; they serve as a gateway to foreseeing future trends and shifts in the economic domain. For those in business and finance, grasping this complex array of experiences is crucial not only for understanding the present but also for predicting future developments. It involves gearing up to address the needs of a varied demographic, adapting to changing economic moods, and devising strategies that align with the diverse financial narratives of our society.”