Visa Survey: Affluent Indians to increase discretionary spending next year, at a rate second only to China


Affluent Indians strike a balance between spending on experiential and material luxuries, investing in their future, and taking care of themselves and their families

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 [1] .

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.

Credit cards are the most preferred payment mode for discretionary spending. According to respondents credit card spending accounted for 55% of all spend in the fine dining category followed by designer watches (53%), designer clothes (52%), and family holidays (51%).

In their spare time, affluent Indians enjoy exercising (66%) or spending time with family (65%) at least once a week.



The Visa Affluent Study 2014 was conducted between September 2013 and December 2013 by TNS Singapore on behalf of Visa. Demographics of the respondents were male and female credit card holders between the ages of 18-55 year olds and holders of at least one general purpose card (credit card) with monthly income sufficient to qualify for a Visa platinum card. In each of the 11 markets, except for the UAE and New Zealand, 500 or more interviews were conducted online with representative quotas of gender, age and income. The study surveyed 5,169 affluent consumers in countries including Australia, Mainland China, Hong Kong, India, Indonesia, Japan, New Zealand, Russia, South Korea, Singapore and the United Arab Emirates.


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