New Delhi: Rising concerns over inflation and fuel prices are pushing urban Indian consumers to tighten household budgets, postpone discretionary spending and stock up on essential goods, according to a new survey by Ipsos India.
The Ipsos India Consumer Pulse survey found that nearly nine out of 10 consumers are prepared to cut spending if prices continue rising amid geopolitical tensions in the Middle East and uncertainty over global crude oil supplies.
The findings reflect growing anxiety linked to the ongoing US-Iran tensions and concerns surrounding the Strait of Hormuz, a key global oil transit route, which could affect energy prices worldwide.
According to the survey, nearly two-thirds of respondents plan to delay major purchases, while six in 10 expect to reduce spending on travel and holidays. Around half said they would cut back on dining out, celebrations and lifestyle-related expenses.
Consumers are also increasingly adopting defensive buying behaviour. Households are stockpiling essentials at levels estimated to be nearly 2.5 times higher than normal, with products such as LPG cylinders, flour, cooking oil, sugar, medicines and fuel witnessing higher purchases.
At the same time, consumers are seeking lower-cost alternatives, smaller pack sizes and promotional offers as value-conscious spending becomes more visible across categories.
The survey also points to changing mobility preferences due to fuel inflation. One in two respondents said they plan to purchase a two-wheeler within the next six months, with a growing preference for electric vehicles.
According to Ipsos India, nearly two-thirds of prospective buyers would opt for an electric two-wheeler if petrol prices rise by 15 percent. Even if EV prices increase by Rs 5,000 to Rs 8,000, more than half said they would still proceed with the purchase.
“Global conflicts such as the ongoing US-Iran tensions can quickly translate into local economic anxieties for Indian consumers, shaping expectations around inflation, supply stability and income security,” said Suresh Ramalingam.
He added that marketers are likely to witness changing demand patterns as consumers increasingly focus on affordability and value.
The survey further found that consumers expect brands to avoid steep price hikes during the current period of uncertainty. Nearly three-fourths of respondents said companies should maintain price stability while ensuring uninterrupted supplies and affordable product formats.
Despite the broader cautious sentiment, some discretionary categories continue to remain resilient. Beauty and personal care products emerged as the top self-indulgence category, followed by café beverages, streaming subscriptions and fitness memberships.
Ramalingam noted that while the government’s decision to hold retail fuel prices has helped shield consumers from immediate inflationary stress, rising commercial LPG prices could make eating out and food delivery more expensive in the months ahead.
