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A critical survey conducted across all income groups highlighted India’s household struggles with monthly and annual expenses amidst rising inflation.
Indian household expenses are soaring every month. (representative image)
Rising inflation threatens to break the back of the Indian middle class. According to Worldpanel India’s Kharcha 3.0 report, average household expenses in India have jumped significantly in the last three years. From about Rs 42,000 in June 2022 to over Rs 56,000 in March, there has been a 33 per cent rise in monthly expenses.
Around 6,000 households were surveyed as part of a syndicated study, which revealed that around 45 per cent of families in India today are struggling to manage their expenses and only 17 per cent feel they are living comfortably.
Inflation and increasing expenses have swelled most drastically in urban cities, where average quarterly spending has gone from Rs 52,711 in June 2022 to Rs 73,579 in March 2025. Over the same period, rural households that spent Rs 36,104 are now paying Rs 46,623 every quarter to make ends meet.
Increasing Expenses Hurt All Income Groups
A multifold jump in expenses has resulted in major budget constraints and financial stress on Indian citizens across income categories. The urban NCCS AB households, who are considered the most affluent, have recorded a 15 per cent increase in their yearly expenses. The rural NCCS CDE households have undergone an 18 per cent jump in annual expenses.
“With rising expenses across both urban and rural segments and most families prioritising essentials, savings, and debt repayment, consumers are becoming increasingly cautious in their choices,” said K Ramakrishnan, Managing Director – South Asia, Worldpanel by Numerator.
Rising expenses have weakened an Indian citizen’s buying capacity and consumer sentiment. The Reserve Bank of India’s Consumer Confidence Index reflects the same, enduring a drop from 98.5 in March 2024 to 95.4 in May 2025. During the survey, a whopping 59 per cent of households expected no improvement in their financial condition for the coming quarter, while 30 per cent worried it could get worse.
Indians are now exercising great caution with their monthly or annual budgets and prioritising needs above wants, including essentials, education and debt repayment. In a hypothetical scenario, 54 per cent of households confirmed that if provided extra income, they would prefer to keep it in savings. Only 7 per cent said they would buy a luxury item with it.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
September 11, 2025, 18:11 IST
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