Indians are Spending More Money on Media and Entertainment

Indians are increasing their media and entertainment expenditures. According to a CMS Info Systems consumption survey, the media and entertainment industry expanded by 29% in the 2024 fiscal year. According to the survey, Indians' average expenditure in the entertainment industry has increased by about 100%.

Industry insiders say that the popularity of Over-the-Top (OTT) platforms and the return of moviegoers to theaters after the epidemic are to blame for this spike. According to the survey, there has been a change in consumer behavior, with Indians now spending more on luxury products and non-necessary (like food) purchases in addition to essential things.

The research also emphasizes how Indians are eschewing the "roti, kapda, makaan" model and spending more on non-essential (such as food) and discretionary (such as luxury goods) products as a result of the country's economic expansion and rising affluence.

The latter is supported by a strong 16.76 percent annual gain in FMCG (fast-moving consumer goods) sector average expenditure in FY 24, a notable reversal from the FY 23 loss of 21.94 percent.

India's travel industry is expanding, as seen by the 6.36 percent average yearly growth in aviation sector expenditure and the 8.16 percent average annual growth in railway sector spending in FY 24. The average investment in the aviation and railway industries increased by 27.32% and 56.35% during a two-year period, from FY 22 to FY 24.

"Consumption remains the engine of the Indian economy, and evolution in spending patterns is contributing to a strong growth." According to Anush Raghavan, President of Cash Management Solutions at CMS Info Systems, "the Indian consumption story is expected to play out robustly in the FY 25, where sectors like FMCG, Aviation, and E-commerce would drive stronger consumption growth."

The decreasing rate of reduction in e-commerce expenditure in FY 24 is one of the report's key indicators of the changing nature of the Indian consumer narrative. The average amount spent on e-commerce fell by 14.61% in FY 24 after falling by 25.44% in FY 23.

With an increase in average ATM withdrawals for spending of 10.37 percent in FY 24, India's metro cities remained the primary destination for consumer expenditure. Semi-metro areas had a rise in spending of 3.73 percent, closely behind the metro cities' dominance.

Changes in consumer behavior and spending patterns are driving the evolution of India's consumption narrative. Stakeholders are keeping an eye on these dynamics and their effects on different economic sectors.