Clothes, furniture or appliances: What's on India's festive shopping list this year?

Diwali is around the corner, and households are gearing up for festive shopping despite tighter budgets. So, what are Indians planning to spend on this year?Fashion remains the biggest priority for shoppers this festive season, says a survey. (Photo: India Today)New Delhi,Oct 20, 2026 11:37 ISTFrom clothes and footwear to home appliances and travel, Indians are planning their festive purchases carefully, with overall spending expected to fall 6% from last year.As Diwali approaches, shopping may be on everyone’s mind, but households appear to be keeping a closer watch on their budgets this year. Clothes, footwear, home appliances and holidays remain popular choices, even as rising prices make consumers more careful about how much they spend.A survey by LocalCircles found that urban Indian households are likely to spend an average of nearly 20,000 on discretionary purchases this festive season. However, total festive spending is estimated to fall to 1.97 lakh crore in 2026, down 6% from 2.10 lakh crore in 2025.The survey received over 67,000 responses from urban consumers across 307 districts in India. CLOTHES TOP INDIA'S FESTIVE SHOPPING LISTFashion remains the biggest priority for shoppers this festive season. Around 72% of households planning festive purchases said they intend to buy clothing, footwear or accessories.Clothing, footwear and accessories remain the most popular festive purchases. Around 72% of households planning to spend this festive season said they intended to buy items from this category. Home appliances and furniture are also high on the shopping list, with 45% of respondents planning purchases. An equal share said they intended to spend on travel and holidays, suggesting that many households are looking beyond shopping for their festive celebrations.Gourmet food and gifts are another area of interest, with 39% of respondents planning to spend on them. Meanwhile, mobile phones, consumer electronics and gadgets feature on the shopping lists of 22% of households. The same share plans to spend on home renovation and interiors.Only 10% of respondents said they were considering buying a car or two-wheeler, while jewellery attracted interest from just 6%.The relatively low interest in jewellery comes amid elevated gold and silver prices, which may be making buyers more cautious about purchases that require a larger budget.FESTIVE BUDGETS REMAIN UNDER PRESSUREThe survey suggests that not every household plans to join the festive shopping rush. While 57% of urban households surveyed expect to make discretionary purchases, 31% said they did not plan to spend on such items at all.Among those planning to shop, 30% expect to spend between Rs 10,000 and Rs 1 lakh, while 9% anticipate spending more than Rs 1 lakh. Another 18% intend to keep their spending below Rs 10,000.The estimated Rs 1.97 lakh crore in festive spending is also lower than last year's figure. In 2025, total urban household spending was estimated at Rs 2.10 lakh crore, following an increase from Rs 1.85 lakh crore in 2024.Last year's festive season coincided with GST rate cuts that came into effect in September 2025, giving consumers an additional incentive to spend. This year, households face higher prices without a similar tax-related boost.SAVINGS TO FUND FESTIVE SHOPPINGAnother notable finding is that households are likely to rely on their savings to pay for festive purchases.According to the survey, 83% of households planning to spend expect to use their savings to some extent. Around 34% said they would fund at least a quarter of their festive expenditure from savings, while 16% expect to pay for their purchases entirely from savings.The findings come at a time when inflation is putting pressure on household budgets. Retail inflation rose to 5.54% in September from 4.83% in August, while food inflation increased to 7.74%.The Reserve Bank of India also raised the repo rate by 25 basis points to 5.50% on October 7, its first increase in more than three and a half years. Higher borrowing costs could make households more cautious about taking loans or using credit to fund discretionary purchases.For retailers, the festive season remains an important period for sales. For consumers, however, the focus appears to be on choosing purchases carefully, balancing celebrations with the need to protect household savings.- Ends