A Season of Renewed Confidence
Across India, households are gearing up for a festive season marked by a strong willingness to spend. Multiple reports indicate a significant rise in consumer confidence, translating into bigger budgets for everything from gifts and apparel to travel
and electronics. Projections for the 2026 festive period suggest overall online sales could grow by 25% to 29% compared to 2025, reaching between ₹1.50 lakh crore and ₹1.55 lakh crore. This growth isn't just about spending more on individual items; it's driven by a higher number of orders, indicating broader participation. One recent survey found that while the number of people increasing their budgets has moderated slightly from last year, the segment of consumers planning to spend ₹50,000 or more has actually grown. This points to a confident consumer base, ready to celebrate with greater enthusiasm.
Travel Takes Center Stage
One of the most prominent trends this year is the surge in travel-related spending. After a relatively slow 2025, the Indian travel market is projected to see a significant rebound in 2026. Hotels in key leisure destinations are reporting booking inquiries pacing 10-15% ahead of last year, with room rates also climbing by 8-10% for high-demand properties. Travellers are not just booking trips; they are planning longer getaways, often combining festival dates with holidays for itineraries spanning five to nine days. This boom is primarily focused on domestic travel, as global uncertainties continue to make destinations within India more attractive. Families are prioritising experiences, local cuisine, and wellness, signalling a shift toward more meaningful and immersive holiday celebrations.
Shifting Carts: E-commerce and Gifting
The online retail landscape is set for its strongest festive season in five years. The Indian e-commerce market is expected to cross the $90 billion mark by the end of 2026, with festive sales providing a major push. An interesting shift is occurring within shopping carts. While mobile phones have traditionally dominated festive sales, their growth is expected to be more modest this year due to rising prices. Instead, consumers are spreading their budgets across other categories. Fashion, beauty, personal care, home goods, and furniture are all projected to see strong double-digit growth. Quick commerce, once focused on groceries, is also becoming a major player, with projections showing it could capture nearly 20% of all online festive spending by expanding into electronics and other categories.
The Forces Fueling the Spree
Several factors are contributing to this optimistic spending outlook. A period of relatively stable inflation has helped restore the real purchasing power of many households. This economic stability, combined with recovering footfalls in physical retail stores, has created a favourable environment. The growth is also becoming more geographically diverse. Demand from Tier 2 cities and beyond is outpacing that of major metros in several key categories like fashion and personal care. This expansion is supported by e-commerce platforms focusing on regional assortments and vernacular campaigns, bringing more of the country into the digital shopping fold. However, some caution remains, with experts keeping a close eye on food inflation, which could potentially squeeze discretionary budgets if prices for staples continue to rise.
