![How Indian Spends Their Money - An In-Depth Report (3) How Indian Spends Their Money - An In-Depth Report (3)](https://i0.wp.com/www.phonepe.com/pulsestatic/791/pulse/static/eecf33d0d5144e6629a04e62465036cc/35631/peeking_into_ind_basket_header.png)
Insights
Peeking into the Indian basket
An in-depth study on how Indians spend
Do Indians like spending on grocery and online shopping? Is it true that investing continues to be afirst week of the month habit? How India spends is a strong indicator of income, the changingdemographics and aspirations of users across the country. PhonePe with over 47% market share in UPI hasdata and deep insights into the spending habits of people in cities, towns, and villages all over thecountry.In this edition, we look at how Indians allocate their money for different types of expenditures overthe course of a month. The data considered here takes into account only payments made towards merchantsand not peer-to-peer transactions.Indians Love Retail Therapy
Based on data gathered for the month of September 2021, Indians tend to splurge on retail & shopping -which accounts for over 25% of all spending in a month. This is followed by grocery & daily needs aswell as service & utilities at over 12%, closely followed by food & beverages at over 10%.This spending habit stays true across varied spend buckets, be it among users who spend more than INR10K, between INR 10K and INR 30K, and over INR 30K each month. So, clearly retail & shopping occupies amajor share in a user’s basket followed by essentials like grocery, food, and utilities.![How Indian Spends Their Money - An In-Depth Report (6) How Indian Spends Their Money - An In-Depth Report (6)](https://i0.wp.com/www.phonepe.com/pulsestatic/791/pulse/static/fbc192a54554dfdff06266c31448f25e/d801c/peeking_into_ind_basket_chart1.png)
Digging deeper into spending habits beyond the metro cities
A major chunk of PhonePe’s users come from non-metro cities. In fact, users from non-metros outspendmetro users in the retail & shopping category. One likely reason behind this trend could be the tendencyof metro residents to have nuclear families as opposed to fairly large families in non-metro cities.In fact, we have observed that users from non-metro cities who spend more than INR 30K per month, tendto spend 30-35% on retail & shopping. Higher disposable income could explain the high expenditures inshopping & retail expenses.How much does a user spend on the PhonePe app
Delving into the data allowed us to understand that a large portion of users spend less than INR 10K,closely followed by the INR 30K+ spend bucket indicating that PhonePe is a popular medium for thoselooking to spend for different types of expenditures.The chart below shows the split on how much users are spending on the PhonePe app.![How Indian Spends Their Money - An In-Depth Report (9) How Indian Spends Their Money - An In-Depth Report (9)](https://i0.wp.com/www.phonepe.com/pulsestatic/791/pulse/static/e61ba8b23e3d55aa0d69d016af8809fb/63780/peeking_into_ind_basket_chart2.png)