Hi everyone,  
 
Welcome to this week’s edition of The Pattern — a weekly newsletter decoding the undercurrents in finance, economy, and technology. Let’s jump right in! 

Spending big, saving little 

India's domestic savings rate has plunged to 5.6% of GDP — the lowest in almost five decades 

And yet, the country is in the middle of an unprecedented consumption wave.  

During this festive season alone: 

• Mercedes sold a car every six minutes — average cost of INR 1 crore. 

• Passenger-vehicle makers overall saw between 15% and 35 % sales growth  

• India's e-commerce sector experienced 24% year-on-year growth in order volumes and a 23% surge in gross merchandise value 

• The number of people availing EMIs for ecommerce transactions increased by almost 50% as compared to the same period last year, according to Reeju Datta, Co-founder, Cashfree Payments 

• The sales of premium televisions jumped two-fold, as compared to the corresponding festive period last year, as per Samsung  

Both mass and luxury segments are booming — a sign that consumption is being driven not just by wealth, but by easy credit and confidence. 

A perfect storm for spending 

Recent GST cuts have added more fuel to this fire. Lower taxes on cars, electronics, and home goods have boosted retail demand and lifted sentiment across industries. 

Add to that stable inflation, attractive EMIs, and credit-on-UPI — and you have the perfect setup for a record-breaking festive season. In many ways, India is mirroring the US consumer mindset: live now, pay later. 

The question is — can it last? 

This surge may not be as organic as it seems. Much of the growth, especially in auto and electronic sales, is possibly being driven by GST-led exuberance rather than sustainable demand. 

Once the festival lights fade and EMIs begin, we’ll know if India’s spending spree is a genuine shift or a temporary sugar high. 

After all, when household savings are at a record low and credit card outstandings are rising fast, the line between inclusion and overextension can get blurry. 

Closing thoughts 

India’s credit revolution has made access easier than ever — and that’s worth celebrating. But as we race to open new lines of credit, we also need to build better guardrails around repayment discipline, borrower education, and early intervention. 

 
Real progress isn’t about how much we spend today. It’s about making sure the momentum lasts even after the festive lights have dimmed. 
 
That's all for me this week. As always, leaving you with some reading recommendations.

Reading list 

1. The spending season: What Diwali reveals about India's consumer mood 

2. Diwali tailwinds: Why post-festive spending will determine true economic health 

3.  Deloitte raises India's 2025-26 GDP forecast to 6.8%, points to economic resilience 

4. From big-ticket buys to daily swipes: How India’s credit card habits are evolving 

Thank you for reading. If you liked this edition, forward it to your friends, peers, and colleagues. You can also connect with me on X here and follow FinBox on LinkedIn to stay updated! 

Cheers,  

Mayank