A Resurgence in Consumer Confidence
Consumer confidence in India is among the highest globally, fuelling a strong desire to spend this festive season. Reports from September 2026 indicate that while there's a thoughtful approach to spending, the overall sentiment is positive. A survey by
InMobi Advertising found that 77% of Indians plan to have higher festive budgets this year. This is driven by a stable economic outlook, rising disposable incomes, and a collective desire to celebrate with renewed vigour. The economy's 7.8% expansion in the first quarter of the fiscal year and strong GST collections have given households more financial headroom. This isn't just about impulse buying; consumers are making planned, considered purchases, often opting for premium products.
Travel and Experiences Take Centre Stage
One of the most significant trends this year is the emphasis on travel. Festivals are increasingly becoming a primary reason for Indians to plan holidays. Instead of just staying home, many are using the festive breaks for both domestic and international trips. Cultural tourism is a major driver, with travellers planning journeys around events like Durga Puja and Diwali. This trend is visible across the country, with destinations like Kerala, Gujarat, and Varanasi seeing heightened interest during their respective festival periods. While international travel to nearby destinations in Southeast Asia remains popular, there is also a strong preference for domestic holidays, with many exploring heritage sites and culinary trails within India. This pivot towards experiences signals a shift in consumer priorities, where creating memories is as important as traditional festive shopping.
Shopping Carts Are Filling Up
Retailers are anticipating a blockbuster season, with online sales projected to see the strongest growth in five years. While electronics remain a popular category, growth is increasingly being driven by other segments like groceries, beauty and personal care, and fashion. One report noted a significant shift in the consumer journey, with 43% of shoppers now using AI-powered search to discover brands and products. This festive season is also seeing a rise in higher-value purchases, with more consumers willing to spend over ₹50,000. Both online and offline stores are buzzing with activity as shoppers look for everything from home appliances and personal gadgets to new apparel for the celebrations.
The New Art of Festive Budgeting
Despite the increased willingness to spend, the key word this year is 'budgeting'. Households are not spending recklessly; they are planning more meticulously. A popular guideline is the 50/30/20 rule, where 50% of the budget is allocated to essentials like gifts for close family, 30% to discretionary items like new outfits, and 20% is kept as a buffer. Financial experts advise creating a detailed list of expenses across categories—such as gifts, decorations, food, and travel—and sticking to it. It's also wise to separate large, one-time purchases like a new appliance from the regular festive gift budget. Tracking spending in real-time using banking apps can prevent costs from spiralling. While options like 'Buy Now, Pay Later' (BNPL) are widely available, consumers are advised to use them cautiously and understand the repayment terms to avoid a post-festival debt hangover.
