Published on: June 4, 2026

Mumbai, 4 June 2026: Kantar has released the latest wave of its State of the Nation consumer sentiment study, revealing how Indian consumers are responding to an increasingly uncertain economic and geopolitical environment.

The first wave of the study, conducted in January 2026 ahead of the Union Budget, found consumers balancing optimism with caution as concerns around inflation, income stability and financial preparedness began to emerge.

Since then, escalating geopolitical tensions, concerns about a global economic slowdown and rising anxieties around employment have intensified pressures on households. Against this backdrop, Kantar revisited consumers in May 2026 to understand how sentiment and spending intentions have evolved.

The findings reveal a consumer who remains resilient but is becoming increasingly focused on financial security. While confidence in economic and personal financial prospects has softened, consumers are responding by strengthening savings intentions, becoming more selective in their spending and prioritising purchases that deliver long-term value. At the same time, travel and meaningful experiences continue to remain of importance.

Confidence in the economy and personal finances is softening:

As uncertainty rises, confidence in India’s economic outlook has weakened.

• Only 48% of consumers expect the economy to improve in 2026, down significantly from 60% in January.
• Concerns around layoffs have increased from 36% in January to 41% in May.
• Expectations around personal financial growth have also moderated. 61% expect their savings and investments to either remain same or decline versus 2025, only 39% expect them to increase.

The findings suggest consumers are becoming more cautious about both the broader economic environment and their own financial prospects.

Financial security is a priority:

Future financial preparedness is emerging as one of the strongest concerns for Indian households.

• Nearly eight in ten consumers (78%) are concerned about having enough money for retirement. The middle-aged cohort (36-45 years) are the most concerned about retirement preparedness.
• Healthcare expenses continue to be the biggest financial worry, cited by 85% of consumers.
• 80% are concerned about managing rising living costs.
• 71% worry about meeting rent and loan EMI commitments.

In response, consumers are increasingly focused on building financial buffers.

• Nearly two-thirds (63%) say they are very likely to save more for their own and their family’s future.
• However, financial pressures remain evident, with 33% reporting a decline in savings and investments compared with 2025, while only 28% report growth.

Consumers are spending selectively and seeking more value:

Rather than cutting consumption altogether, consumers are becoming more deliberate about where and how they spend. Spending intentions across discretionary categories such as dining out, entertainment, shopping and subscriptions have weakened.

• 53% plan to increase discretionary spending, down from 55% in January. Those intending to reduce discretionary spending have increased from 8% to 10%.

A similar pattern is visible for high-ticket purchases.

• Consumers planning to increase spending on big-ticket items have fallen from 46% to 44%. Those planning to reduce spending have increased sharply from 11% to 16%.

Inflation remains the primary reason for this caution, cited by 65% of Indians. Other drivers include the desire to increase savings (48%), growing economic uncertainty (45%) and concerns around investment returns (42%).

Consumers are actively making trade-offs to optimise household finances with 44% focusing on reducing electricity and fuel costs. 

• 42% reducing eating out and cooking at home more frequently. 
• 41% are reducing subscription spending as well.
• 39% are delaying purchases until major sales and are actively seeking coupons and promotional offers

At the same time, consumers continue to favour assets perceived as offering long-term value and security. More than half (52%) say they are very likely to purchase gold over the next 12 months, reinforcing its continued role as a trusted store of investment and value.

Travel and experiences remain resilient:

Despite greater financial caution in everyday spending, consumers continue to prioritise experiences that contribute to wellbeing and personal fulfilment.

• 60% plan to take a domestic holiday over the next 12 months.
• 52% intend to travel internationally.
• 52% are likely to spend on once-in-a-lifetime experiences.

The findings suggest that while consumers are becoming more disciplined in managing day-to-day finances, they remain unwilling to compromise on experiences that deliver emotional value, personal enrichment and a sense of escape from growing economic and geopolitical uncertainty.

What this means for brands:

The Indian consumer is not retreating from spending but becoming far more intentional. Brands that can demonstrate tangible value, help consumers feel financially confident and deliver meaningful experiences will be best placed to succeed in an environment where households are increasingly prioritising security, certainty and long-term wellbeing.

Commenting on the findings, Deepender Rana, Executive Managing Director, South Asia, Kantar says: “Our latest report shows that Indian consumers remain resilient but are becoming noticeably more cautious as economic and geopolitical uncertainty rises. Confidence in future financial growth has softened, while concerns around job security, retirement preparedness and rising living costs have intensified. As a result, consumers are becoming more deliberate in how they spend- prioritising savings, value and long-term financial security, while continuing to protect experiences that enhance their wellbeing and quality of life. For brands, this presents a clear imperative: demonstrate tangible value, build trust and relevance and deliver meaningful benefits that help consumers navigate uncertainty with greater confidence.”

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