Chandigarh leads India in average household spending, followed by Thiruvananthapuram, as smaller cities increasingly outpace major metros.

Chandigarh leads India in average household spending. |

Mumbai: are usually seen as India’s biggest spending hubs, but a new report shows a different picture when consumption is measured on a per-household basis. Smaller and mid-sized cities are outpacing several major metros in average household spending.

According to ‘The Many Urban Indias’ report, Chandigarh ranks first in the country in average household consumption, followed by Thiruvananthapuram.

Smaller Cities Outpace Mumbai

The report shows that average household spending in Amritsar, Ahmedabad and Jabalpur is also higher than in Mumbai, highlighting how India’s consumption story is expanding beyond its largest metropolitan centres.

has an average annual household income of around ₹28.3 lakh. Its households also spend significantly more than those in most other Indian cities, putting it at the top of the consumption rankings.

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Why Mumbai, Delhi Still Matter?

Mumbai and Delhi falling behind in average household spending does not mean their overall consumer strength has weakened. Their much larger number of households means they remain among India’s biggest consumption markets.

An average Mumbai household earns around ₹24.2 lakh annually and spends approximately ₹14 lakh a year, according to the report.

Delhi-NCR has around 75 lakh households, while Mumbai has approximately 46-47 lakh households. This large consumer base keeps the two metropolitan regions ahead when overall spending, rather than average household consumption, is considered.

Top 100 Cities Form $844 Billion Market

India’s top 100 cities together represent an annual consumer market of around USD 844 billion, the report said. These cities account for only about 19% of the country’s population but contribute a disproportionately large share of income and consumption.

Average annual household expenditure across these 100 cities stands at approximately ₹12.1 lakh.

The findings underline a broader shift in India’s urban economy, with consumption growth no longer concentrated only in Mumbai, Delhi and other major metros. Smaller and rapidly developing cities are increasingly emerging as powerful consumer markets.

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