Indian Household Expenses Rise Over 33 Per Cent in Three Years

12 Sep 2025 CW Team

Household spending, particularly in urban areas, recorded a notable rise each year. However, rural households have also seen a sharp rebound, the report added.

“Household spending has been climbing steadily, with average quarterly expenses rising from about Rs 42,000 in 2022 to over Rs 56,000 in 2025. Urban families continue to spend the most, but rural households have also seen a sharp rebound, underscoring the mounting pressure on budgets across the country,” the report from Kharcha 3.0 by Worldpanel by Numerator stated.

In urban markets, average quarterly expenses grew from Rs 52,711 in June 2022 to Rs 64,583 in March 2024, and further to Rs 73,579 in March 2025.

Similarly, rural household expenses increased to Rs 46,623 in March 2025 from Rs 36,104 in June 2022. The report is based on a sample of 6,000 households, with housewives as key FMCG purchase decision-makers, providing a comprehensive picture of evolving consumer dynamics.

“This year, expenses are increasing even within lower-income households in both urban and rural areas,” the report noted, adding that “as expenses continue to increase, more consumers are struggling to manage their budgets effectively.”

In 2025, expenditures are shifting slightly towards education and debt, the report added.

As expenses rise, consumers are prioritising essentials while occasionally making impulse purchases, with some opting for cheaper alternatives to manage their budgets.

The report also found that a majority of consumers are focusing on increasing their income. “More than half of consumers (54 per cent) would save additional income, followed by 38 per cent who would spend on daily necessities, 18 per cent on debt repayment, and only 7 per cent on luxury or premium products,” it stated.

Indian household average quarterly expenses have steadily increased by over 33 per cent in the last three years, reaching Rs 56,000 in 2025, according to a report by Worldpanel by Numerator on consumption behaviour across urban and rural India.Household spending, particularly in urban areas, recorded a notable rise each year. However, rural households have also seen a sharp rebound, the report added.“Household spending has been climbing steadily, with average quarterly expenses rising from about Rs 42,000 in 2022 to over Rs 56,000 in 2025. Urban families continue to spend the most, but rural households have also seen a sharp rebound, underscoring the mounting pressure on budgets across the country,” the report from Kharcha 3.0 by Worldpanel by Numerator stated.In urban markets, average quarterly expenses grew from Rs 52,711 in June 2022 to Rs 64,583 in March 2024, and further to Rs 73,579 in March 2025.Similarly, rural household expenses increased to Rs 46,623 in March 2025 from Rs 36,104 in June 2022. The report is based on a sample of 6,000 households, with housewives as key FMCG purchase decision-makers, providing a comprehensive picture of evolving consumer dynamics.“This year, expenses are increasing even within lower-income households in both urban and rural areas,” the report noted, adding that “as expenses continue to increase, more consumers are struggling to manage their budgets effectively.”In 2025, expenditures are shifting slightly towards education and debt, the report added.As expenses rise, consumers are prioritising essentials while occasionally making impulse purchases, with some opting for cheaper alternatives to manage their budgets.The report also found that a majority of consumers are focusing on increasing their income. “More than half of consumers (54 per cent) would save additional income, followed by 38 per cent who would spend on daily necessities, 18 per cent on debt repayment, and only 7 per cent on luxury or premium products,” it stated.

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