Indian consumers turn defensive as job fears rise, economic confidence falls

Indian consumers are becoming more worried about jobs, savings and the economy, prompting many to cut discretionary spending and build larger financial buffers, according to a Kantar survey.

Only 48% of consumers expect India’s economy to improve this year, down sharply from 60% in January, while concerns about layoffs have risen to 41% from 36%. Financial stress is becoming more visible: 33% reported a decline in savings and investments compared with 2025, while only 28% reported growth. At the same time, 61% expect their savings and investments to either remain flat or decline this year.

Also read: Consumer sector beats expectations but faces commodity crunch from Q2, warns BofA Securities


The survey of 1,684 consumers found rising concern over household finances despite relatively resilient consumption.

Healthcare costs were cited as the biggest financial worry by 85% of respondents, followed by rising living expenses (80%). Nearly eight in 10 consumers said they were worried about having enough money for retirement, while 71% were concerned about meeting rent and loan repayment obligations.

As a result, consumers are becoming more cautious with spending. The share planning to reduce discretionary spending on categories such as dining out, entertainment and shopping increased to 10% from 8% in January. For big-ticket purchases, the proportion intending to cut spending jumped to 16% from 11%.

Inflation remains the biggest reason for caution, cited by 65% of respondents. Many are responding by reducing restaurant visits, cutting subscriptions, delaying purchases and searching for discounts and promotional offers.

“Our latest report shows that Indian consumers remain resilient but are becoming noticeably more cautious as economic and geopolitical uncertainty rises,” said Deepender Rana, executive managing director, South Asia at Kantar.

“Confidence in future financial growth has softened, while concerns around job security, retirement preparedness and rising living costs have intensified. As a result, consumers are becoming more deliberate in how they spend — prioritising savings, value and long-term financial security.”

Also read: Premiumisation, digital push, and India’s consumption story: Inside HUL’s growth blueprint

Despite the caution, consumers remain willing to spend on experiences. About 60% plan a domestic holiday over the next year, while 52% intend to travel overseas and a similar proportion expect to spend on once-in-a-lifetime experiences.