Summary of this article
Urban India expected to spend Rs 2.19 lakh crore this festive season, up 18 per cent from 2024.
Survey by LocalCircles covered 44,000 households across 319 districts.
Big-ticket spending rising: 37 per cent will spend over Rs 20,000; six in 10 to cross Rs 5,000.
Online shopping soars: 28 per cent plan to buy mainly online, up 115 per cent from last year.
91 per cent to use digital payments; EMIs raise overspending concerns.
Top spends: electronics (44 per cent), home makeovers (44 per cent), white goods (29 per cent), gourmet groceries (61 per cent).
Experts urge budgeting and restraint to avoid post-festival financial stress.
Urban India is preparing to loosen its purse strings. A fresh consumer survey says households are likely to spend Rs 2.19 lakh crore during the 2025 festive season, compared with Rs 1.85 lakh crore last year. That’s an 18 per cent jump in just a year.
The findings come from LocalCircles which show a sharp rise in big-ticket spending: 37 per cent of families say they will spend more than Rs 20,000 this season, up from 26 per cent in 2024. Six in ten households expect to go beyond Rs 5,000 in extra outlay. Phones, gadgets, home makeovers, and gourmet groceries are among the most popular picks.
This rise in appetite is being linked to a combination of Goods and Services Tax (GST) cuts on consumer goods, a healthy monsoon that lifted sentiment, and fewer worries about inflation. The mood is upbeat, but financial planners are already sounding a note of caution. Spending freely during the festive rush, they say, can come back to haunt families once the lights and discounts fade.
1 September 2025
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Shopping Shifts And Spending Patterns
The report highlights a big change in how family's shop. Twenty-eight per cent of urban households plan to buy most of their festive goods online, up from just 13 per cent last year. That’s a 115 per cent jump in the space of one season. Shoppers cite better deals, convenience, and wider choice as reasons for moving online.
Digital payments are set to dominate. Ninety-one per cent of households say they will pay through UPI, wallets, or cards. While this makes transactions smoother and easier to track, experts note that easy equated monthly instalments (EMIs) schemes can tempt people into spending more than they intended.
Where is the money going? Forty-four per cent of families plan to buy smartphones and other electronics, another 44 per cent are looking at home renovation, while 29 per cent will focus on white goods such as fridges and air-conditioners. Beyond the big-ticket items, 61 per cent expect to spend on groceries and gourmet foods, and nearly half say they will buy fashion or beauty products.
Making The Splurge Count
Financial advisers suggest a simple strategy: fix budgets for each category before the season begins. It helps families avoid impulse buys when faced with endless flash sales. Online shoppers are also urged to double-check carts before hitting “buy now."
Not all spending is wasteful. Upgrading to energy-saving appliances or investing in a bit of home improvement can stretch the value of festive spending well beyond the season. Many families also use this period to set aside a slice of their bonus or the savings made from discounts, directing it into small investments or a rainy-day fund.
This year’s celebrations may well outshine last year’s in scale and enthusiasm. However, financial planners point out that the glow of the festival should linger in memories, not in mounting credit card bills. A little restraint alongside the splurge can make the season both joyful and sustainable.
