CMS Info Systems Limited Unveils ‘Unfolding India’s Consumption Story’ Report

On April 29, 2024, CMS Info Systems Limited released the CMS Consumption Report 2024, titled ‘Unfolding India’s Consumption Story’. The report underscores compelling trends supporting the consumption boom in India and provides a sector- and state-level analysis of growth in domestic consumption.

CMS highlights the country’s consumption trends and hotspots fueled by rising cash-based expenditures in its second annual trends compendium. This is supported by the proprietary CMS Cash Index™ (CCI), which encompasses 1,50,000 business points, servicing every second ATM and every third organised retail outlet in India.

The key highlights of the report are:

• Entertainment is no longer a luxury in India. During FY 2024, the average spending in the Media and entertainment sector rose by 29.30%. From FY22 to FY24, the average spending in the sector increased by nearly 100%.
• Indians are moving beyond the ‘roti, kapda, makaan’ paradigm and increasingly spending on discretionary and non-discretionary goods. The latter is endorsed by a robust 16.76% annual growth in the average spending in the FMCG sector in FY24, which is a remarkable recovery compared to the 21.94% decline observed in FY23.
• The travel economy is on the rise in India, as validated by an annual growth of 6.36% in the average spending in the Aviation sector and 8.16% annual growth in Railway sector spending during FY24. From FY22 to FY24, the aviation and railway sectors witnessed 27.42% and 56.35% growth in average spending.
• The Indian consumption story is undergoing a transformation as evident by the slowing pace of decline in the E-commerce and Education sectors’ spending in FY24. In FY24, average spending in E-commerce was at -14.61% vs -25.44% in FY23 and average spending in Education remained positively muted vs -1.61% in FY23.
• In FY24, metropolitan areas remained at the forefront of the nation’s consumption expenditure, experiencing a 10.37% rise in average ATM withdrawals for expenses. This was accompanied by a 3.94% uptick in SURU locations, closely trailed by a 3.73% increase in semi-metro locations.
• In FY24, the leading states for ATM withdrawals in India were two in the North (Delhi and Uttar Pradesh), two in the South (Tamil Nadu and Karnataka), and one in the East (West Bengal).

The President of Cash Management Solutions of CMS Info Systems, Anush Raghavan, said, “The Indian economy continues to be driven by consumption, and we are observing robust growth with evolution in spending patterns. The Indian consumption story is expected to play out robustly in FY25, where sectors like FMCG, Aviation, and E-commerce would drive stronger consumption growth. The confluence of varied factors, including increasing digitisation, rising incomes, and demand for customisation, would boost consumption in these sectors”.

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