In 2023, Indian consumers spent 29% of their budgets on discretionary items, with online gaming slightly ahead of dining out and food deliveries, according to a recent study by Perfios and PwC India.
The study revealed that essential expenses, like loan EMIs, took up 39% of spending, and necessary bills, such as utilities and groceries, accounted for 32%. This analysis was based on bank statements from more than 3 million tech-savvy borrowers who used fintech platforms for loans, excluding credit card and cash transactions. Most participants earned around Rs 40,000 per month.
Breaking down discretionary spending shows that lifestyle purchases, including clothing and electronics, made up a large chunk at 63%. Online gaming attracted 13.7% of discretionary funds, followed closely by dining out (13.1%) and entertainment (3.1%). Spending on alcohol and travel was lower, at 2.7% and 1.2%, respectively.
The study found that online gaming expenses were common among entry-level earners, with 22% of those making under Rs 20,000 engaging in it. This figure dropped to 12% for those earning over Rs 1 lakh. In tier-1 cities like Delhi-NCR and Mumbai, the average monthly spend on online gaming was Rs 5,081, while in tier-2 cities, it was slightly less at Rs 4,763.
Sabyasachi Goswami, CEO of Perfios, noted that people in metropolitan areas often turn to online gaming for fun, especially when living alone or during breaks from their busy work life. Meanwhile, in smaller towns, individuals might prefer physical sports.
As for dining out, the average spending increased with income—from Rs 492 for entry-level earners to Rs 2,170 for high-income individuals. A study by the Ministry of Statistics and Programme Implementation found that urban households in metro areas now allocate about 50% of their food budget to dining out and delivery, up from 41.2% a decade earlier. This growth is linked to the rise of food delivery apps and changing work habits.
While only 1.2% of discretionary spending went to travel, those who did travel spent significantly. An entry-level worker averaged Rs 776 per month on travel, compared to Rs 3,066 for high-income earners. This figure might be understated, as many prefer using credit cards for booking travel, which wasn’t included in the study.
In summary, the trends in discretionary spending reflect changing lifestyles and priorities among Indian consumers. Gaming, dining out, and travel are key areas where people are willing to spend, driven by a mix of social, recreational, and experiential desires.
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online gaming, online purchasing, Indian consumers online business, Lifestyle purchases, online gaming, and dining out top discretionary spending, business news, indian express
