As Diwali approaches, urban Indian consumers are poised to spend big, according to YouGov's Diwali Spending Index, which has hit a record high of 117.37, up 21% from last year's figure of 96.43.

This surge in spending propensity marks the highest level in four years, indicating strong enthusiasm among consumers.

The report findings were calculated through surveys of 2,019 respondents in September 2024, with data reflecting urban India’s demographic spread.

The YouGov Diwali Spending Index, which tracks consumer spending intentions during the festive season, cites a significant increase in tier-1 cities (35%) and Northern India.

The Index is derived from various factors, including rising household income, willingness to invest or splurge, and overall economic optimism.

Key findings include:

• 35% of urban Indians report higher household income compared to last year
• 24% strongly agree they have more savings today than a year ago
• 21% intend to splurge during Diwali
• 34% plan to spend more than last year, up from 31% in 2023
• Proportion of consumers intending to spend less remains steady at 25%
• Those planning to spend the same amount stands at 28%
• Increased household income attribute carries the highest weightage on the Index score

Deepa Bhatia, general manager, YouGov India, said, “Our Diwali Spending Index 2024 reveals a record high of 117.37, the highest since the last four years. This increase, particularly driven by higher household incomes and increased savings, indicates the importance of the festive period for consumption in the economy.  Consumers are embracing the festive spirit with renewed enthusiasm despite some concerns on the economy surfacing. To capture the full potential of this opportunity, an understanding of consumer segments and motivations is a prerequisite for brands and marketers.”