Sixty per cent of affluent consumers in India have plans to increase their discretionary spending in the coming year, second only to China, according to the Visa Affluent Study 2014.
The study also reveals that after China, India has the largest proportion of affluent population which sets aside money for discretionary spending. On an average 9 in 10 affluent Indians set aside Rs 25,000 monthly for discretionary spending on items such as dining/nights out, holidays and purchasing designer goods.
Mr. Uttam Nayak, Global Head of Emerging Markets Digital and Group Country Manager India & South Asia, Visa, said: “The survey results show affluent Indians continue to be optimistic with plans to spend more on discretionary items in the year ahead. At the same time, 7 in 10 expect to save more in the coming year, which demonstrates a good balance between spending and a commitment to growing and maintaining their wealth.”
Affluent Indians plan to spend 60% of their household income and save or invest the rest. They spend an average of about Rs. 460,000 per year on household expenses with groceries, shopping and food & beverages being the largest spend categories across all demographic groups.
However, children’s education is considered among the highest priorities across all the countries surveyed, with 9 out of 10 affluent Indians saying this is a top priority for them. Providing the best available education for their children is considered very important by over 70% of affluent Indians.
Affluent Indians continue to lay emphasis on spending quality time with their families. They are also highly involved in managing, protecting and growing their wealth with 7 in 10 reading about financial and wealth management at least once a month.
Among affluent Indians, 92% spend on fine dining, 80% on designer clothes, 79% on family holidays and 68% on jewellery. Among the 60% who expect discretionary spending to increase, 49% are likely to increase spending on family holidays while 45% intend to increase spending on fine dining.