With Diwali 2026 on the horizon, traders and businesses are closely watching consumer spending trends. In India, markets across segments remain flooded the week before Diwali as families tend to plan for their big ticket purchases, fashion, decoration, and other new lifestyle upgrades. A consumer survey by LocalCircles revealed that about 57% Indian households have planned festive spending this season.
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According to the report, urban India festive spending is projected to be at Rs 1.96 lakh crore, 6% lower compared to 2025. A majority of the spending is expected to be about clothing and fashion, while appliances are also a key shopping item.
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“While 57% of households surveyed are likely to spend this festive season, 31% plan no discretionary spending at all. Of those spending, 72% will buy clothing/fashion products….,” the report stated.
Average Shopping Budget:
The report has also revealed the shopping budget range that families are planning to have this Diwali shopping season. When asked about festive spending plans, 31% consumers said that no discretionary spending was planned this year.
Of the 22,904 respondents, 18% expect to spend less than Rs 10,000, while 15% anticipate spending between Rs 10,001 and Rs 25,000. Nearly 9% of households plan to spend between Rs 25,001 and Rs 50,000, while around 6% expect to spend between Rs 50,000 and Rs 1 lakh. The survey further revealed that 9% of households are likely to spend more than Rs 1 lakh.
“Urban Indian households are likely to spend Rs 20,000 on average this festive season; total urban festive spending is estimated at INR 1.97 lakh crore, 6% lower than 2025…,” it noted.
Consumers Expect To Use Savings:
The survey also shed light on how consumers are planning to finance their festive spending this year. As per the report, around 83% households will dip into savings to some extent. Of these, about 34% plan to fund 25% or more of their festive spending from savings.
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“In aggregate, 83% of urban households planning festive spending expect to dip into savings, and 34% expect to fund a significant amount, 25% or more, from savings, including 16% who will rely on savings entirely. With high retail inflation….drawing on savings appears to be how many households plan to protect festive spending from pressure on monthly budgets…,” the report stated.
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