The index is calculated by analyzing nine key factors, including changes in gross household income, household expenses, intent to invest or splurge, and general economic optimism.
New Delhi: Indian consumers are showing a renewed appetite for spending as the festive season approaches, according to the latest YouGov Diwali Spending Index.
The index, which measures the spending propensity of urban Indians, has hit a record high of 117.37 this year, marking its highest level in the last four years. This figure represents a significant jump from last year’s score of 96.43, highlighting growing enthusiasm for Diwali celebrations among the country’s urban population.
The index is calculated by analyzing nine key factors, including changes in gross household income, household expenses, intent to invest or splurge, and general economic optimism. Among these, increased household income emerged as the strongest driver, with over a third of respondents (35%) affirming that their gross household income is higher than it was a year ago—a slight rise from 32% last year. Additionally, nearly a quarter (24%) of urban Indians reported having more savings today compared to a year ago, and one in five (21%) expressed a desire to splurge during Diwali, further boosting overall spending intent.
This year, 34% of urban Indian consumers indicated that they are likely to spend more than they did in 2023, up from 31% who expressed the same intention last year. Meanwhile, the proportion of those planning to spend less remains nearly unchanged at 25% in 2024, compared to 26% in 2023. The percentage of consumers intending to spend the same amount as last year stands at 28% for 2024.
“It’s clear that consumers are embracing the festive spirit with renewed enthusiasm despite some concerns on the economy surfacing. To capture the full potential of this opportunity, an understanding of consumer segments and motivations is a prerequisite for brands and marketers,” said Deepa Bhatia, General Manager, YouGov India.
The YouGov Diwali Spending Index is based on a survey of 2,019 respondents conducted through YouGov India’s online panel in September 2024. The sample primarily consists of consumers from the National Consumer Classification System (NCCS A), with a proportion of NCCS B respondents, reflecting the basic demographics of urban India in terms of age, gender, regions, and city tiers.
The index was derived using Ordinal Logistic Regression and Johnson’s Relative Weight modelling to understand the relationship between the factors and overall spending intent. The final score is calculated by comparing the actual weighted spending intent with a hypothetical scenario where equal weightage is assigned to all nine predictors.
