Indians to spend more on discretionary items by 2030, boosted by higher incomes

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Subscribe to enjoy similar stories. NEW DELHI : Households in both rural and urban India are expected to spend more on discretionary products such as apparel, footwear, travel, and wellness by the end of the decade, driven by a doubling of per capita income by 2030 and availability of more avenues to indulge, a report by Deloitte India and Retailers Association of India (RAI) said.

In urban households, food and food service expenditures encompassing staples, packaged food, dining out, and alcohol/tobacco are projected to decrease from 42.2% in 2023 to 40.45% by 2030. Conversely, spending on travel and recreation is expected to rise to 15% by 2030, up from 11.37% in 2023.

Similarly, expenditures on health (medical expenses), wellness, fitness, and beauty and personal care are anticipated to swell to 11% of household discretionary spending, compared to 8.72% in 2023. “This evolution of spending habits marks a clear shift towards higher discretionary expenditure, particularly in urban areas, where convenience, entertainment and comfort are becoming key drivers of consumption," the report, released on Thursday, said.

India's rising economy has lifted per capita income above $2,000 in FY25, which is expected to vault past $4,000 by 2030, enhancing consumers’ purchasing power. By 2030, the number of Indians earning more than $10,000 annually is expected to nearly triple, from 60 million in 2024 to 165 million, reflecting the growth of the country's middle class and a significant shift towards discretionary consumption.

Rural spending is expected to increasingly align with urban trends, with a slight reduction in food expenditure and a shift towards processed foods, dining out and entertainment. By 2030, food spending in rural