49% of respondents showed interest in shopping from new startups this festive season, according to a new report by early-stage venture capital firm Rukam Capital. The report indicates that India’s festive retail economy is projected to grow by 23% and reach an estimated $125 to $150 billion in 2025, supported by GST 2.0 reforms and increased spending from smaller towns beyond metro markets.
The study, titled “Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections,” was conducted in partnership with YouGov. It surveyed over 5,000 respondents across 18 states to explore how consumer preferences are changing during India’s festive period.
“The Indian consumer is no longer a passive participant in shaping trends. The market is changing and is built on affordability, aspirations, and digital sophistication,” said Archana Jahagirdar, Founder and Managing Partner, Rukam Capital. “It’s not just about what a brand sells, but how it connects with people, makes them feel understood and valued. This change is pushing even the most traditional categories to reinvent themselves beyond seasonal triggers.”
Wellness influences festive consumption
The study found that festive shopping is increasingly influenced by national and community pride. More than 50% of Indian consumers now prefer homegrown or small business brands for their festive purchases. In Tier 1 cities, 61% of shoppers actively choose Indian brands, while 59% of respondents link their festive spending to social or environmental causes.
Wellness influences festive consumption. The report shows a clear preference for healthier food options. About 53% of Millennials and 47% of Gen Z plan to buy healthy snacks this season. Additionally, 73% of younger consumers said they prefer sugar-free or alternative sweets. Nearly one in three respondents looks for festive products that combine heritage with health. This shows a growing interest in traditional products with a modern, health-focused twist.
Digital payments
Digital payments have not only taken over but also remained the first option for festive shopping, and UPI was the most preferred payment method. The study discovered that with every 5 shoppers, 2 utilised UPI for running purchases, followed by credit and debit cards. The maximum of 42% usage of UPI was recorded in tier 3 cities. On the other hand, tier 1 users utilised UPI at 36% and credit cards at 24% for the sake of rewards and cashback offers.