Business
Household Spending Up 33% In India Since 2022, Nearly Half Face Budget Stress
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A critical survey conducted across all income groups highlighted India’s household struggles with monthly and annual expenses amidst rising inflation.
Indian household expenses are soaring every month. (representative image)
Rising inflation threatens to break the back of the Indian middle class. According to Worldpanel India’s Kharcha 3.0 report, average household expenses in India have jumped significantly in the last three years. From about Rs 42,000 in June 2022 to over Rs 56,000 in March, there has been a 33 per cent rise in monthly expenses.
Around 6,000 households were surveyed as part of a syndicated study, which revealed that around 45 per cent of families in India today are struggling to manage their expenses and only 17 per cent feel they are living comfortably.
Inflation and increasing expenses have swelled most drastically in urban cities, where average quarterly spending has gone from Rs 52,711 in June 2022 to Rs 73,579 in March 2025. Over the same period, rural households that spent Rs 36,104 are now paying Rs 46,623 every quarter to make ends meet.
Increasing Expenses Hurt All Income Groups
A multifold jump in expenses has resulted in major budget constraints and financial stress on Indian citizens across income categories. The urban NCCS AB households, who are considered the most affluent, have recorded a 15 per cent increase in their yearly expenses. The rural NCCS CDE households have undergone an 18 per cent jump in annual expenses.
“With rising expenses across both urban and rural segments and most families prioritising essentials, savings, and debt repayment, consumers are becoming increasingly cautious in their choices,” said K Ramakrishnan, Managing Director – South Asia, Worldpanel by Numerator.
Rising expenses have weakened an Indian citizen’s buying capacity and consumer sentiment. The Reserve Bank of India’s Consumer Confidence Index reflects the same, enduring a drop from 98.5 in March 2024 to 95.4 in May 2025. During the survey, a whopping 59 per cent of households expected no improvement in their financial condition for the coming quarter, while 30 per cent worried it could get worse.
Indians are now exercising great caution with their monthly or annual budgets and prioritising needs above wants, including essentials, education and debt repayment. In a hypothetical scenario, 54 per cent of households confirmed that if provided extra income, they would prefer to keep it in savings. Only 7 per cent said they would buy a luxury item with it.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
September 11, 2025, 18:11 IST
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The annual tradition of “Dry January” turned into “Damp Monday” at one supermarket, with shoppers returning to alcohol consumption in the middle of the month.
Waitrose said that the month was “not so dry after all,” identifying January 12 as “Damp Monday” after sales of wines, beers, and spirits surged by 11 per cent compared to the week before.
The grocer noted a “significant softening” of the Dry January trend over the past five years, suggesting a more balanced “Damp January” approach is now prevalent.
While alcohol sales in January 2022 were 42 per cent lower than other months, this year saw a reduced drop of just 25 per cent.
Notably, Argentinian and Chilean wine sales experienced a considerable boost last month, rising by 25 per cent and 27 per cent respectively compared to the previous year.
Compared to this time last year, searches on Waitrose.com for “Argentinian wine”, “red wine” and “Chilean wine” were up 300%, 63% and 18% respectively.
Pierpaolo Petrassi, head of beers, wines and spirits at Waitrose, said: “Damp is the new dry, as we’re seeing customers move away from the ‘all-or-nothing’ mentality and instead look towards more mindful, ‘damp’ moderation rather than quit entirely.
“This shift sees the likes of a luxury Argentinian Cabernet sitting comfortably alongside premium non-alcoholic spirits as sophisticated sips, proving that the modern palate values flavour profiles and social connection over the buzz alone.
“No doubt the no and low trend skyrocketed in 2022 as the result of the ‘pandemic reset’ transitioning out of the final lockdowns, as well as the ‘sober curious’ movement going mainstream on social media.
“Now, 2026 is the ‘lifestyle’ year, with customers finding balance as part of a more tempered, year-round approach to drinking.”
Data reported by The Spirits Business trade publication from early this year suggested that while 58% of the UK public aimed to cut back, a significant portion – roughly 31% – had opted for a “damp January” – reducing intake rather than cutting it out entirely.
Business
Budget eases PF, ESI deduction rules for employers, allows relief for delayed deposits – The Times of India
In a move expected to bring relief to employers and reduce routine tax disallowances, the finance bill has proposed a key change to the treatment of employees’ provident fund (PF), ESI and similar contributions, allowing deductions even where there is a delay in deposit, provided the amount is deposited by the employer entity with the relevant welfare fund authorities before the due date of its Income-tax return.At present, employers can claim deduction for employees’ PF and ESI contributions only if the amounts are deposited within the strict timelines prescribed under the respective welfare laws. Even a minor delay permanently disqualifies the expense for tax purposes, a position that had been settled by the Supreme Court (SC) after years of litigationUnder the proposed amendment to Section 29 of the Income-tax Act, 2025, the definition of “due date” for claiming deduction of employees’ contributions is set to be aligned with the due date for filing the income-tax return by the employer entity.Explaining the shift, Deepak Joshi, a SC advocate said employers are currently held to a rigid standard. “The law, as interpreted by the SC, meant that if employee contributions were not deposited within the due date under the relevant welfare fund laws, no deduction was allowed — even if the payment was made before filing the income-tax return,” he said.“The proposed amendment substitutes the definition of ‘due date’ to mean the due date of filing the income-tax return. The positive impact is that even if there is a slight delay in depositing employees’ contributions, so long as the amount is deposited before the return-filing deadline, the employer will be allowed the deduction,” Joshi added. Experts view the move as part of the government’s broader effort to soften compliance rigidities and reduce avoidable litigation.
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How ‘Dry January’ turned into ‘Damp Monday’ at this popular supermarket
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