VOIWORLD/BUSINESS DESK
Rising Incomes Bring Hope to India’s Middle Class: Home Credit Survey
Even though rising prices are putting pressure on lower-middle-class families in India, many people remain hopeful. A new survey by Home Credit India, says rising incomes, more use of digital tools, and a strong focus on education are key reasons for this optimism.
Indians Remain Hopeful About the Future
About 73% of people surveyed feel positive about their financial future. The “future expectations” score stands strong at 59, meaning rising prices haven’t hurt people’s long-term confidence.
But differences across cities remain. People in big cities earn more (₹36,000) but also spend more (₹23,000). Those in smaller cities earn less (₹30,000) but also spend less (₹17,000). More family members are now sharing money responsibilities — men contribute 74% of household spending, and Gen Z is also helping out with 61%.
Groceries Take the Biggest Chunk, But Education is Rising Fast
Groceries still take up the largest share of household budgets (29%), which is higher than last year. But spending on education is growing the fastest — it has gone up by 34% and now takes 19% of monthly spending. Gen X (born between 1965–1980) spends the most on education — 22% of their monthly budget.
Changing Lifestyles and Spending Habits
People are spending less on fashion and more on experiences. Local travel has become popular, with 31% of households taking short trips monthly — most of them are led by Gen Z. Fitness memberships (7%) and OTT subscriptions (6%) are also gaining ground, showing a shift towards personal development.
Digital Tools are a Big Help — But Also a Risk
Digital platforms are becoming key in managing money. About 63% of people say apps help them meet financial goals. Half of all purchases now happen online, and digital loans are as common as offline ones. UPI is used by 80% of people.
But there are risks. Even though many know about online scams, some still save sensitive info on their phones — and a few have lost money. This shows the need for better digital safety and awareness.
Affordable Credit Fuels Dreams
Owning a home, starting a business, and educating children are the top goals for families. Around 28% believe affordable credit helps make these dreams come true. But concerns remain — especially about rising education costs (18%) and not having enough emergency savings (15%). Many — especially women — are now seeking financial advice.
Incomes Are Rising, But Saving is Hard
The average family earns ₹33,000 and spends ₹20,000 on basic needs. But saving is becoming more difficult — only half of the people managed to save money, down from 60% last year. About 12% had to borrow just to meet basic expenses.
Still, people are feeling more positive. This year, 57% said their income went up — more than last year’s 52%.
Ashish Tiwari, Chief Marketing Officer of Home Credit India, said, “When we started this study in 2023, we saw that many Indian families were turning struggles into success. This year’s results show something special: despite tough times, India’s lower-middle-class is more hopeful, more digital, and more determined than ever.”
Watch full interview of Ashish Tiwari, Chief Marketing Officer of Home Credit India
