In 2025, India's consumer spending patterns are undergoing a significant transformation, marked by a notable rise in expenditure on non-vegetarian food, healthcare, and services. An analysis of recent National Account Statistics underscores these shifts, revealing evolving priorities and preferences among Indian consumers.

One of the most prominent trends is the increasing share of non-vegetarian food in total consumption expenditure. As disposable incomes rise and dietary habits evolve, more Indians are incorporating meat, fish, and eggs into their diets. This shift is particularly noticeable in urban areas, where exposure to global culinary trends and changing lifestyles are influencing food choices. According to a report, between 2005 and 2025, spending on meat has grown by an annual average of 17%, outperforming overall food spending. This dietary transition is also linked to increasing awareness of protein-rich diets and the perceived health benefits of non-vegetarian food. While vegetarianism remains a significant aspect of Indian culture, particularly influenced by religious beliefs and social norms, there is a clear trend toward greater acceptance and consumption of non-vegetarian options.

Another key area of increased spending is healthcare. India's healthcare costs are projected to rise by 13% in 2025, surpassing the global average of 10%. This increase is driven by several factors, including rising hospitalization rates, growing adoption of advanced medical treatments, and an increase in non-communicable diseases. As the population ages and lifestyles become more sedentary, conditions such as cardiovascular diseases, hypertension, and cancer are becoming more prevalent, leading to higher treatment expenses. The Economic Survey 2024-25 indicates a substantial increase in health expenditure, rising from Rs 3.2 lakh crore in 2020-2021 to Rs 6.1 lakh crore in 2024-2025, reflecting a compound annual growth rate of 18%. The government is also prioritizing healthcare infrastructure and medical education, with a 10.8% hike in the health budget for FY2025-26. This includes increased funding for key schemes such as the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) and the Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (PM-JAY), aimed at expanding healthcare facilities and providing health coverage to vulnerable populations.

The service sector is also witnessing a surge in spending. The share of services in total expenditure has increased, with spending on health, education, entertainment, and financial services growing at a faster pace than on essential items like food and clothing. India's services sector has demonstrated robust growth, with the HSBC India Services Purchasing Managers' Index (PMI) rising to 59.0 in February 2025. This growth is driven by rising domestic demand and increased output, supported by advancements in technology, infrastructure, and workforce development. The increasing adoption of high-tech digital solutions, including e-commerce, fintech, cloud computing, and AI-driven services, is also contributing to the expansion of the service sector. As India's per capita income rises and urbanization continues, consumers are allocating more of their budget to discretionary spending on services, reflecting a shift towards a more experience-driven economy.

In summary, Indian consumer spending in 2025 is characterized by a distinct shift towards non-vegetarian food, healthcare, and various services. These trends reflect changing lifestyles, increasing disposable incomes, and a growing awareness of health and well-being. As India's economy continues to grow, these shifts in spending patterns are likely to shape the future of various sectors and drive new opportunities for businesses and policymakers alike.