Is Festive Credit Card Spending Signaling a Strong Consumption Revival?
About the Survey
The Diwali 2025 Festive Spending Survey by Paisabazaar reveals a surge in consumer confidence, with over 42% of credit card users reporting spends above ₹50,000 during the festive period. The study covered more than 5,000 respondents across metros and Tier-2/3 cities, offering valuable insights into changing spending patterns.
The findings indicate a clear uptick in discretionary purchases led by electronics, travel, and premium lifestyle segments. Rising digital credit adoption and cashback offers are reshaping the way Indians manage short-term credit.
Key Highlights — Diwali 2025 Spending Trends
| Category | Key Metric | YoY Trend |
|---|---|---|
| High-Value Spenders | 42% spent above ₹50,000 | +18% |
| Average Spend per User | ₹33,000 | +18% YoY |
| EMI/Cashback Utilization | 63% users | ↑ High Adoption |
| Tier-2/3 Spending Growth | Fastest segment | ↑ Broad-based confidence |
42% of users spending above ₹50,000 signals a clear rebound in consumption power, especially among working professionals and millennials driving premium purchases.
Average spend rising 18% YoY shows that consumers are more comfortable leveraging digital credit tools like EMI and cashback offers for bigger-ticket purchases.
Tier-2 and Tier-3 surge indicates that aspirational consumption is no longer limited to metros — smaller cities are contributing meaningfully to the festive retail momentum.
For traders tracking consumer demand and BFSI sector stocks, follow the Nifty Tip and F&O Tip for tactical opportunities linked to festive spending plays.
Sectoral Impact Analysis
- Retail: Festive buying supports apparel, jewellery, and consumer electronics segments.
- BFSI: Credit card issuers and NBFCs benefit from higher transaction volumes.
- E-commerce: Increased order values and digital payments accelerate profitability.
With festive spending hitting record highs, India’s consumption-driven growth story continues to strengthen, positioning the retail and BFSI sectors for steady Q3 gains.
SWOT Analysis — Festive Spending Trends
Strengths
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Weaknesses
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Despite short-term repayment risks, the long-term digital credit ecosystem remains strong, supported by fintech innovation and consumer trust in structured EMI tools.
Outlook & Investment View
- Short-term: Positive festive demand and robust retail sales momentum.
- Medium-term: Consumption uptick to support BFSI and e-commerce profitability.
- Long-term: Expanding credit penetration to sustain digital economy growth.
Investors focusing on consumer finance or fintech plays should monitor Q3 earnings momentum closely for opportunities aligned with festive credit cycles.
Investor Takeaway
Derivatives and Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Registered Investment Adviser, observes that while Festive Credit Market faces a short-term margin drag, its long-term sustainability strategy and digital ecosystem remain intact. A patient investor approach is key to capitalizing on its recovery phase.
Related Queries on Festive Credit Card Spending Trends
- How Has Digital Credit Boosted Festive Retail Sales?
- Which Sectors Benefit Most from Festive Spending?
- What Does Rising EMI Usage Indicate for BFSI Growth?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
