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India is emerging as the most optimistic consumer market stepping into 2026, with a strong rise in household spending intent and confidence levels significantly higher than global peers, according to a report by Nuvama.
The report highlighted that around 60 per cent of Indian consumers expect to increase their household spending over the next six months. This growing willingness to spend reflects improving consumer confidence and expectations of better economic conditions. It stated, "India emerges as most optimistic consumer market for 2026. Indian consumer spending intent. Approx. 60 per cent of Indian consumers expect to increase household spending over the next six months." Autos are leading the spending intent, with nearly 70 per cent of consumers planning higher expenditure in this category. This is followed by mobile devices and mobile plans, with 63 per cent of consumers indicating increased spending in each of these segments. The report noted that almost one-third of Indian consumers are planning higher overall spending, with discretionary purchases emerging as the primary driver. This level of discretionary spending intent is the highest across all recorded markets. Spending intent remains stronger for long-cycle and essential categories such as automobiles, mobile phones and housing rentals. In contrast, intent is relatively lower for frequent consumption categories like packaged snacks and soft beverages, indicating a more selective and value-driven approach to everyday spending. On the broader outlook, the report stated that Indian consumers are significantly more optimistic than their global counterparts. India has a net optimism of 27 per cent, compared to a global average of minus 12 per cent, placing it second only to China. About 61 per cent of Indian consumers expect continued good times ahead, while 34 per cent anticipate widespread unemployment or depression. The report further highlighted that only a net 17 per cent of Indian consumers expect recent global conflicts or political events to slow down India's growth, the second lowest level after China. In contrast, this figure is over 60 per cent for consumers in the UK, France and Germany. Additionally, 69 per cent of Indian consumers expect to spend more due to rising prices of essentials and non-essentials, indicating that inflationary pressures are also shaping spending behaviour. Overall, the report highlighted India's position as the most optimistic consumer market going into 2026, supported by strong household spending intent, resilience to global uncertainties, and sustained confidence in economic prospects. (ANI)
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