Indians Feeling More Financially Secure: Study Shows Rising Income and Growing Interest in Saving
Ranchi: A new study by Home Credit India reveals a positive outlook on finances for many Indians. The “Great Indian Wallet” survey shows a rise in both income and optimism about the future, with many consumers looking to save and invest more.
Key findings of the study include:
- Income on the Rise: 74% of consumers expect their income to increase in the coming year, with Hyderabad boasting the highest average monthly income (₹44,000).
- Saving for the Future: Two-thirds of respondents plan to save and invest more in the next year, reflecting a focus on financial security.
- Essential Expenses Remain Dominant: For lower-middle-class Indians, groceries (26%) and rent (21%) are the biggest expenses.
- Discretionary Spending Varies: Chennai leads in spending on local travel, dining, and movies, while Lucknow spends the least.
The study also explores digital payment trends:
- UPI Reigns Supreme: UPI (Unified Payments Interface) remains the dominant digital payment method, with 72% of users being current users.
- Credit on UPI Gains Traction: Nearly half (42%) of consumers are interested in using “Credit on UPI,” a new feature that allows instant credit access through UPI apps.
Reasons for Optimism
The positive outlook can be attributed to several factors, including a strong economy and rising earning capacity. The study highlights a general increase in income across various demographics. Cities like Bangalore and Hyderabad are experiencing significant growth, offering promising opportunities for career advancement.
Saving Habits and Financial Security
The survey also reveals interesting insights into saving habits. Interestingly, men and Gen Z show a greater propensity to save compared to other demographics. Additionally, regions like the East tend to have higher savings rates compared to other parts of the country.
However, the study also identifies areas where improvement is needed. With one-fifth of respondents reporting experiences with financial fraud, there’s a need for increased awareness and security measures regarding digital transactions.
Overall, the “Great Indian Wallet” study paints a picture of growing financial confidence among Indian consumers. As income levels rise and saving habits improve, the future looks bright for many. The increasing adoption of digital payment methods and a growing interest in features like “Credit on UPI” indicate a shift towards a more digital and financially inclusive India.
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