India’s festive season has long been a measure of the country’s spending appetite, a reflection of aspiration, prosperity, and the confidence of its growing middle class. Rukam Capital’s 2025 Consumer Report suggests a shift in India’s buying behaviour. Beneath the gleam of new purchases and digital discounts, a different kind of mood is taking shape. Indians are moving away from impulsive indulgence toward more thoughtful, value-driven consumption.
The numbers back that up: festive sales reached ₹6.05 trillion this year, and much of it came from people choosing consciously rather than carelessly.
A Record Year with a Conscience
Diwali 2025 was a strong year for the economy. The Confederation of All India Traders (CAIT) estimated festive sales were up nearly 40% from last year. About 87% of consumers picked Indian-made goods.
Rukam Capital’s report found that 58% of shoppers prefer homegrown brands, and around 14% are willing to pay as much as 30% more for them. It’s a mix of pride and practicality and a sign that “vocal for local” has evolved from a slogan into a behaviour.
“The Indian consumer today is quality-conscious, value-seeking, and purpose-driven,” said Archana Jahagirdar, founder of Rukam Capital. That’s also visible in other parts of the data: 56% of consumers now favour brands linked to social causes, and 61% of Tier 1 buyers stated that they prefer startups or women-led ventures, which is also attracting more attention from venture capital firms looking to support emerging consumer trends.
Even with GST 2.0 making products cheaper by simplifying slabs to 5% and 18%, shoppers aren’t splurging. They’re upgrading selectively, spending on what feels worth it, not just what’s available.
Spending Smart, Not Hard
Credit card spending tells a similar story. The Paisabazaar Festive Spending Survey showed that 42% of card users spent more than ₹50,000 this Diwali, and 22% crossed ₹1 lakh, the highest level in years. Yet most purchases were timed around offers: 91% of respondents used card-linked deals, while fewer than 10% shopped without waiting for discounts.
That’s not recklessness, it’s calculation. Rukam Capital’s report shows that Tier 1 shoppers use a mix of UPI (36%) and credit cards (24%), with the latter primarily for rewards. In Tier 3 towns, UPI dominates at 42%, indicating that digital payments have become a common habit in small towns rather than an urban exception.
The pattern is clear. Indian consumers are spending, but on their own terms. They’re chasing value, not volume.
From Glitter to Green
The festive market is also splitting along new lines, not rich and poor, but conscious and casual. 40% of respondents told Rukam Capital they actively look for eco-friendly brands. One in four considers sustainability a key factor before making a purchase.
Dietary choices are changing, too. Half of all shoppers said they opted for healthier festive snacks, while 40% chose sugar-free sweets. Among millennials and Gen Z, that number jumped to 73%.
It’s not just what people buy, but how they buy. Two-thirds of consumers now prefer brands that respond directly on social media over those relying on influencers. Poor customer service, not missing discounts, is now the biggest turn-off. The Indian festive shopper, once a symbol of indulgence, is becoming a more measured and minimalist buyer.
The GST Effect
The new GST 2.0 rollout in September has given this year’s festive season an understated yet meaningful boost. With rates pared down to two simple slabs, 5% and 18%, prices have become clearer, margins steadier, and consumers more confident to spend. In the apparel sector, sales of budget-friendly garments priced under ₹2,500 increased by about 7-8%, while sales of pricier pieces slowed slightly, according to The Hindu. However, the gains extended far beyond the fashion industry. Electronics and home appliances saw sales climb by more than 20%, and both FMCG and auto makers reported solid double-digit growth, helped by smoother logistics and fewer tax complications. Rather than shaking up the market, GST 2.0 has steadied it by widening access, sharpening competition, and adding a sense of balance to India’s festive spending spree. The rise of conscious spending is also beginning to attract venture capital into startups that focus on sustainability and responsible consumption.
A More Mature Festive Economy
If 2015 was about showing off what you could buy, 2025 seems to be about knowing why you buy it. Festivities now revolve less around quantity and more around experience and identity. Even luxury is changing from brand logos to brand values.
Rukam Capital found that 55% of consumers remember brands for their founders’ stories or ethics, not for celebrity endorsements. It’s a cultural shift with economic consequences. As shoppers become more mindful, sales volume may grow more slowly, but brand value and loyalty will deepen.
GST simplification and digital payments are speeding up this change. The market that once thrived on scale is learning to thrive on substance. Venture capital investors are now following these mindful trends, betting on brands that combine profitability with purpose.
The Minimalist Majority
Ultimately, India’s festive economy reflects its evolving middle class, one that is digital, discerning, and increasingly local in its loyalties. The mass consumer of a decade ago is evolving into a mindful minimalist, one who wants meaning as much as material possessions.
What appears to be restraint may actually be confidence, a sign that India’s shoppers no longer equate celebration with excess. And that, perhaps, is the most festive outcome of all.
