India's consumption shows spending shift in FY25: Report

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A new report by CMS Info Systems reveals a notable shift in India's consumption patterns in FY25. Consumers are increasingly focusing on product-based spending, moving away from the experience-led consumption that was prominent in the previous fiscal year. This signals a return to pre-COVID spending habits, with an emphasis on immediate fulfillment.

The CMS Consumption Report 2025 highlights that key sectors driving this growth include Consumer Durables, Multi-brand Outlets, and FMCG. In FY24, Media & Entertainment, FMCG, and Consumer Durables led the growth. The report indicates that rising disposable incomes and a preference for convenience and comfort are fueling this shift. The growth in consumer durables is also attributed to the increasing preference for home ownership.

The report identifies Bihar, New Delhi, and Uttar Pradesh as the top three consumption hotspots in FY25 (in terms of growth in average cash dispensed

per ATM).

The report also highlights the continued importance of cash in the Indian economy, even with the growth of digital payments. Currency in Circulation (CIC) has increased by 157% between 2014 and 2024, and ATMs remain a crucial touchpoint for consumers. While digital transactions are rising, cash still accounts for a majority (60%) of consumer expenditure. The average ticket size for ATM withdrawals has also increased.