India’s shifting consumption landscape
The third edition of the CMS Consumption Report offers a deep dive into the evolving landscape of cash-led consumption trends across India, based on proprietary data from CMS Info Systems (CMS). FY25 has seen a marked rise in consumption, with consumers shifting their spending from experience-led to product-based consumption.
This shift is not just evident in retail category consumption but also in the geographic distribution of spends. Generally, states and Union Territories (UTs) with high Gross State Domestic Product (GSDP) and high per capita GSDP tend to be high spenders. However, within this mix, the consumption hotspots have witnessed rotation over the last couple of years.
A key tailwind for consumption growth in the country is the availability of a robust cash infrastructure. Between 2014-2024, several enablers have aligned to propel the cash economy, which, in turn, has been instrumental in the making of a consumption economy.
GROWTH IN THE PERIOD 2014 - 2024
157%
Currency in Circulation
32%
Number of ATMs
36%
Number of Bank Branches
Peeling the layers of consumption
From 30-minute deliveries to premium products, Indian consumers are upgrading fast. Quick Commerce is up 10%, organized retail is thriving, and discretionary spending is hitting new highs. Here's what’s fueling the shift.
Key consumption trends of FY25
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Consumer Durables: Long - lasting and steady
Why are Indian households shifting their wallets back to Consumer Durables? From a 6% jump in FY24, long-term value is back in vogue. Here’s what’s behind the resurgence.
Average monthly spending in the consumer durables sector increased by
72%
in FY25
*Given the significant churn in the consumer durables sector in FY25, compared to FY24, we are using March 25/March 24 annualized figures to make the numbers more representative.
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Multi-brand Outlets : Brick & Mortar make a comeback
What are the tailwinds for growth in organized and digital retail? Is the convenience of online shopping combined with the tactile benefits of physical stores too hard to resist?
Average monthly spending in the Multi-brand outlets has increased by
12%
in FY25
-
FMCG: Holistically meeting household needs
With rising disposable incomes and the basic necessities now taken care of, are Indian consumers showing an increasing preference for discretionary items? Are we looking at the making of a secular trend – i.e., continued spending on goods despite a growing interest in the experience economy?
Average monthly spending in the FMCG sector increased by
4%
in FY25
INDIA:
a consumption hub
Growth in monthly average cash dispensed per ATM IN FY25
Source: CMS Data
Overall, the average cash dispensed per ATM has increased
from INR 1.02 Cr in FY17 to 1.30 Cr in FY25.
State Picture: Zooming into the states
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Top 5 Consumption hotspots in FY25 (YoY Growth)
Similar to sectoral data, we see a rotation theme playing out in state consumption as well with a shift in the top 5 consumption hotspots across years. The only exception has been New Delhi which has consistently stayed in the top 5 for the past 3 consecutive years.
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A Tale of 2 Indias
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India continues to forge ahead on its unique economic growth journey that successfully manages the tenuous balance between being a cash-led economy and a digital economy. Inarguably, India’s digital journey has been significant and swift. However, even as Indians embrace digital payments, cash continues to rule the roost. Cash remains an integral part of the Indian economy and ATMs remain an important touchpoint that facilitate easy access to cash for India’s large and widespread population.
As per CMS ATM Dispensed data, the average ticket size (ATS) of ATM withdrawals in FY25 was INR 5,658, registering a y-o-y growth of 3%. Further, select months like October 2024, January 2025, February 2025, and March 2025 witnessed a higher growth in ticket size at 4%, 4%, 5%, and 6% respectively.
Average ticket size of ATM withdrawals in FY25 was INR 5,658 registering a YoY growth of
3%
