India reducing non-essential spending: PwC survey

As per the 2023 PwC Global Consumer Insights Pulse Survey, 63% of Indians are cutting back non-essential spending. The consumers are reducing non-essential spending to ensure they have enough money for essential needs.

The PwC survey, received responses from 9,180 consumers across 25 territories. 500 Indians took part in the survey that was conducted across 12 metros, tier-1 and tier-2 cities of the country. Out of these Indians, 57% were male and 43% female. The survey was conducted from 24 October to 16 November 2022.

The 2023 PwC Global Consumer Insights Pulse Survey stated, "Consumers globally are weighed down by concerns around cost of living and personal finances. Around 74% of Indian respondents say they are concerned about their personal finance situation, as opposed to 50% globally. 63% of Indian consumers are cutting back non-essential spending altogether".

Inflation has affected the demand, as prices of essentials surged in the last year. Indians now say that they would want to spend less on luxury items, travel, and fashion.

"The survey also found most Indian consumers are expecting to reduce their expenditure across all surveyed categories over the next six months, a significant decline in planned spend across all categories since the previous pulse survey in June 2022. Industries, including luxury and premium products, travel, and fashion, expect to see the greatest portion of consumer spend reductions over the next six months, whereas the groceries segment is expected to decline the least," PwC said

Half of the Indian consumers said, that inflation remains as the major concern among other issues. Meanwhile, 35% has said that supply chain issues also dominate with larger queues and busier store locations keep the consumers from spending. 28% feel that product availability is a major cause for the reduction.