Regionally, Bihar raced into the top 3 cash-led consumption hotspots for the first time, alongside New Delhi and Uttar Pradesh
Bengaluru: India’s consumption economy continues its robust cash-led momentum in FY25, with the consumer durables sector recording a 72% surge in monthly spending, as per a report by CMS Info Systems.
This spike is attributed to rising per capita income, increased home ownership, and the subsequent demand for furnishing and appliances—marking a sharp rebound from the 6% growth seen in FY24.
Multi-brand Retail Outlets emerged as a new magnet for consumer spending, showing a 12% increase after a steep -29% decline in the previous year. The trend is largely driven by growing premiumization and the continued preference for in-store experiences when purchasing high-value products.
FMCG consumption posted a 4% year-on-year rise, signaling steady recovery after a -22% dip in FY23. This growth suggests Indian consumers remain committed to essentials and everyday goods, even as the broader economy pivots toward services and experiences.
Quick Commerce registered a significant 10% increase in consumption, fueled by hyper-local delivery networks and deeper penetration into urban and semi-urban markets. This reflects the growing appetite for speed, convenience, and digital ordering backed by physical fulfillment.
Regionally, Bihar raced into the top 3 cash-led consumption hotspots for the first time, alongside New Delhi and Uttar Pradesh, which have consistently held strong positions over the past two years. Himachal Pradesh and Chhattisgarh also emerged as new high-growth regions, underlining the widening spread of cash-driven demand in North India.
Supporting these trends, the average ticket size (ATS) of ATM withdrawals in FY25 grew by 3% year-on-year to INR 5,658. Notably, the months of October 2024, January 2025, February 2025, and March 2025 recorded the sharpest monthly increases in cash withdrawals at 4%, 4%, 5%, and 6%, respectively—indicating strong spending during festive and seasonal cycles.
“The third edition of our report highlights how cash continues to power India’s real economy. From metros to emerging states, we’re seeing clear evidence of sustained demand, backed by rising incomes and broader access to retail services,” said Anush Raghavan, President – Cash Management Solutions, CMS Info Systems.
