A Mixed Spending Outlook
Recent surveys for 2026 paint a complex picture of consumer sentiment. While fewer Indians plan to increase their overall festive budgets this year compared to last, a growing segment is ready to make big-ticket purchases. A survey from InMobi Advertising
noted a 2 percentage point increase in consumers willing to spend above Rs 50,000. However, the total number of people planning to raise their budgets has decreased from 83% last year to 77% this year. This suggests a split between cautious households and confident high-spenders. This caution is understandable, as many families still feel the pinch of rising living costs, even if official inflation numbers have moderated. This feeling of stretched finances is shaping a more deliberate approach to spending.
The Key Spending Hotspots
Discretionary spending traditionally surges during the festive months, and this year is no different. While apparel and footwear remain the most common purchases, cited by 50% of shoppers, other categories are gaining ground. Jewellery purchases are on the radar for 40% of consumers, followed by groceries and daily essentials at 37%. This reflects a broadening of the festive shopping basket beyond just traditional items. Households are also spending more on personal care, social protection, and miscellaneous goods, a category that includes everything from smartwatches to grooming services. With retailers offering attractive discounts and a festive atmosphere encouraging impulse buys, these are the areas where budgets are most likely to come under pressure.
Start with a Realistic Budget
The single most effective tool to navigate the festive season without financial regret is creating a detailed budget. This is not about limiting joy, but planning for it. Start by listing all anticipated expenses: gifts, new clothes, special meals, sweets, home decor, and travel. Assign a specific, realistic amount to each category. This provides a clear roadmap for your spending. Many experts suggest creating this plan well in advance to avoid last-minute scrambles for cash. It is also wise to distinguish between needs and wants, prioritising what truly matters to your family's celebration. This will help you allocate funds more meaningfully and cut back on less important areas without feeling deprived.
Smart Strategies for Savvy Shoppers
A tight budget doesn't mean you can't have a memorable celebration. There are numerous ways to spend smarter. For instance, consider preparing sweets and festive snacks at home, which is often more affordable and personal than buying from stores. When it comes to gifting, the thought matters more than the price. Thoughtful options like handmade items or group gifting for more expensive presents can save money while still being heartfelt. Another key strategy is to leverage technology. With many shoppers now using AI-powered tools for recommendations and virtual try-ons, you can compare prices and find the best deals more efficiently. However, discipline is crucial. Stick to your pre-planned shopping list to avoid impulse purchases driven by sale promotions.
Navigating Credit and Debt
The festive season often brings a flood of tempting 'buy now, pay later' schemes, no-cost EMIs, and credit card offers. While these can seem like an easy way to manage expenses, they can quickly lead to a debt trap if not handled carefully. It is a tradition for many to clear debts before Diwali, and this principle is a sound financial lesson for everyone. Before swiping your card, assess whether the purchase fits within your budget. If you do use credit, have a clear plan to pay off the balance quickly to avoid high interest charges. The goal is to start the new year on a strong financial footing, not with the burden of festive debt.
