Festive season: 75% want to spend more this year

With the economy showing signs of revival, at least 75% of common people are feeling optimistic about spending during the festive season. This is the general mood as found in a recent survey by InterMiles titled Consumer Spending Sentiment Index 2.0.

According to the survey, a majority responded with optimistic enthusiasm. A whopping 75% said that they were either more willing (33%) or just as willing (42%) to undertake big shopping expenditures like pre-pandemic levels.

Close to 70% of respondents placed greater emphasis on securing the future by increasing investments and savings.

Only 25% of respondents said they are less willing to spend in this Diwali than the previous one.

The study revealed 40% of the respondents are willing to spend below Rs 10,000 this Diwali for shopping or gifting purposes.

28% would spend between Rs 10,000 and Rs 25,000 and 16% would spend less than Rs 50,000.

Only 6% of people would spend between Rs 50,000 and Rs 1 lakh and 3% would go above Rs 1 lakh. About 7% of the total respondents said they did not spend a single rupee in this festive season for gifting purposes.

Credit cards are the most preferred form of payment this festive season, with close to 60% of respondents choosing to swipe their cards as they seek to accumulate reward points, increase credit scores and gain access to exclusive discounts and benefits, the study revealed.

Other cashless forms of payments have also gained popularity with 20% of respondents preferring to transact via UPI, 10% via debit cards and 5% via e-wallets.

However, the most remarkable trend is the drastic reduction in the use of cash. Close to 6% of people would pay via cash during this festive time, said InterMiles study.