Mumbai and Delhi Lag Behind in Spending; Here Is the Country's Highest-Spending City

According to a new report, small and mid-sized cities are outpacing major metropolises in terms of average household expenditure. Chandigarh tops the list, while Thiruvananthapuram, Amritsar, Ahmedabad, and Jabalpur have recorded higher spending than Mumbai.

When discussing high-spending cities in India, major metropolises like Mumbai, Delhi, and Bengaluru usually come to mind. However, a new report has shifted this perspective. Small and mid-sized cities have surpassed many major metropolises in terms of average household expenditure. According to 'The Many Urban Indias' report, Chandigarh ranks first, followed by Thiruvananthapuram in second place.

The report indicates that average household expenditure in Amritsar, Ahmedabad, and Jabalpur is also significantly higher than in Mumbai. However, major metropolises still lead in terms of the overall consumption market due to their larger number of households.

Which are the highest-spending cities?

Chandigarh leads in terms of average consumption per household, while Thiruvananthapuram holds the second spot. Average household expenditure in Amritsar, Ahmedabad, and Jabalpur is also reported to be higher than in Mumbai. Notably, Chandigarh's average annual household income is reported to be around ₹28.3 lakh, and household spending there is significantly higher compared to other cities in the country.

Why aren't Mumbai and Delhi at the top?

This report does not imply that the spending capacity of Mumbai or Delhi has diminished. Due to their large populations and high number of high-income households, they remain among the country's largest consumer markets. It is reported that the average annual income of a household in Mumbai is approximately ₹24.2 lakh, with an expenditure of around ₹14 lakh.

There are approximately 75 lakh households in Delhi-NCR, compared to about 46–47 lakh in Mumbai. It is this large household base that allows metropolises to lead in terms of total expenditure.

What is the level of expenditure across 100 Indian cities? According to the report, the country's top 100 cities collectively generate an annual consumer market worth approximately $844 billion. Significantly, while these cities are home to about 19% of India's total population, they account for a substantial share of the nation's income and consumption.

The data further reveals that the average annual household expenditure in these 100 cities is around ₹12.1 lakh. This indicates that India's urban economy now comprises not only major metropolises but also smaller, rapidly developing cities.